I am aware of these views and, in fact, I spoke at the same conference, which was held recently by the World Pension Association in co-operation with the Irish Association of Pension Funds. Many issues were discussed at this conference in relation to pensions systems both at the broad macro and at the more detailed level.
Pensions are an international issue and most countries in the developed world face the same challenges going forward as to how to provide pensions that are both adequate and sustainable in a context where our populations are ageing fast. Overall, the combined effect of large numbers reaching retirement age and increasing life expectancy will be a doubling of the old age dependency ratio. In 2000, the over 65s were equivalent to about one quarter of the working age population in the EU; by 2050 this is projected to rise to nearly 50%.
Ireland stands out from other EU countries in that just over 11% of our population are over age 65. This does not mean that we will be exempt from the difficulties faced by other countries. Ireland faces the same challenges, the only difference being that these appear later. The future of national pensions systems has been the focus of an in-depth analysis at EU level over the past year or so through what is known as the "open method of co-ordination". Under this process, agreed objectives in the area of adequacy, financial sustainability and modernisation were set out. The aim is that member states learn from each other while remaining free to develop their pensions systems in accordance with their own traditions, values and priorities.
As part of the EU process, we have presented a clear strategy to achieve the common goals of adequacy, sustainability and modernisation which was well received by the EU. Our overall strategy for the future in the area of adequacy includes a continuation of our policy of significant increases in State pensions and increasing the number of people with supplementary pensions cover from its current level of about 50% to 70% of those at work aged over 30.
In relation to ensuring the sustainability of our system, the Deputy will be aware that the Government has set up the national pensions reserve fund which will be available to part-fund pension expenditure from 2025. A high level of workforce participation among all sectors of society is also an important element of any policy to ensure the sustainability of our pensions systems. In this regard workforce participation of older people in Ireland is above the EU average and very close to EU targets set for 2010.
Overall, the EU considered that Ireland had made good progress in ensuring the financial sustainability of our pensions system while at the same time increasing the level of our pensions.
Pensions will remain an important issue for this country, and the EU as a whole, and it will be necessary to monitor closely the situation on an ongoing basis in the years ahead.