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Increasing Retirement Age Necessary
RTE Business
Ireland
October 18, 2004
Increasing the age of retirement here may not only be necessary from a financial perspective but also from a social viewpoint, an international conference in Dublin heard today.
The comments were heard at the annual UK and Irish Pensions and Investing Summit, organised by the Irish Association of Pension Funds.
The Chairman of the European Federation for Retirement Provision said that people were 'deluding' themselves if they believed that additional saving alone would fully compensate for the good news of increased life expectancy.
'The Turner report, issued last week in the UK, which found that people must be forced to work until they are 70 or pay an additional €83 billion in taxes is a wake up call not just for the UK but for all European countries, including Ireland,' Alan Pickering said.
'Throwing a valuable resource such as experienced and healthy people in their prime into compulsory retirement is not the best way for Ireland to continue its enviable record as the fastest growing economy in Europe and may not be what many people want,' he said.
Gerry Ryan, Chairman of the Irish Association of Pension Funds, said it was increasingly important that state pension regulations were made more flexible and did not force people to retire when they had a lot more to offer.
'People should have the choice of working until after traditional retirement age and should not be penalised for doing so,' he said.
He added that the rollover of SSIAs into long term pension provision was an option with serious consideration.
Rosheen Callender of SIPTU told the conference that the union wanted the introduction of pension contributions from birth, for every child born after January 1, 2005, combined with a state 'pension start-up bonus' for every young person as they come off child benefit.
'Thus in 16-18 years time, the vast majority of people aged 16-36 will have substantial pension funds on which to build thereafter, in most cases with the help of the employer,' she said.
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