How to fix the Pension crisis?

By 2025 pension crisis as per dissapered Deagel.com will get sorted. Ireland is no 114 on the list.

List of Countries Forecast 2025

They must have supplied us with some really bad batches…

An overall pensions plan is scheduled to go to Cabinet by the end of next month.

Meanwhile, the Chair of the Oireachtas Joint Committee on Social Protection, Community and Rural Development and the Islands has said there is no guarantee that increasing the pension age would meet the potential deficit in the pension fund that could be there by 2050 or 2070.

Because of that, Denis Naughten said, the committee has recommended that the pension age should remain at 66.

but by not increasing it there is a guarantee that by that time there will be a massive deficit… god help anyone who is relying on a state pension rather than funding their own.

god help anyone who is relying on a state pension rather than funding their own.

Until the State starts raiding private pensions to fund state pensions!

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At that stage I imagine the MMT magic money tree will be printing state pensions Europe wide.

Again.

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Every month of real interest rates of -5% is effectively money printing. A disincentive to save, may as well buy now, everything will be dearer in a year.

No mention in the article about mandatory contributions to a prviate pension fund

This is the report from Oct 2021 which recommended

• The Commission endorses the early introduction of an automatic enrolment retirement savings
system, which will introduce a funded component to the pension system and improve
retirement income adequacy for future pensioners.

Not mention either of PRSI

the Commission recommends removing the exemption from PRSI for those aged 66 or over.

Auto Enrolment for Pensions fom 2024 has finally been announced

Match required by employer and the State is capped at 80K salary

https://www.gov.ie/en/publication/27bab-launch-of-the-final-design-of-an-automatic-enrolment-ae-retirement-savings-system-for-ireland/

Example: Years 1-3
Salary 100K.
Capped at 80K.
You pay in 1.5% (100K x 1.5% = 1,500).
Employer must put in 1.5% (80K cap x 1.5% = 1,200).
State must put in 0.5% (80K cap x 0.5% = 400).
Total per annum: 1,500+1,200+400=3,100 of which 1,600 was free

Example: Years 4-6
Salary 100K.
Capped at 80K.
You pay in 3% (100K x 3% = 3,000).
Employer must put in 3% (80K cap x 3% = 2,400).
State must put in 1% (80K cap x 1% = 800).
Total per annum: 3,000+2,400+800=6,200 of which 3,200 was free

Example: Years 7-9
Salary 100K.
Capped at 80K.
You pay in 4.5% (100K x 4.5% = 4,500).
Employer must put in 4.5% (80K cap x 4.5% = 3,600).
State must put in 1.5% (80K cap x 1.5% = 1,200).
Total per annum: 4,500+3,600+1,200=9,300 of which 4,800 was free

Example: after 10+ years
Salary 100K.
Capped at 80K.
You pay in 6% (100K x 6% = 6,000).
Employer must put in 6% (80K cap x 6% = 4,800).
State must put in 2% (80K cap x 2% = 1,600).
Total per annum: 6,000+4,800+1,600=12,400 of which 6,400 was free

Press Release
https://www.gov.ie/en/press-release/0a98a-new-workplace-pension-scheme-for-ireland-minister-humphreys-announces-details-of-automatic-enrolment-retirement-savings-system/

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Nice.

Less “take home pay”, extra bank holiday, sick pay, and now auto pay rises (in the form of pension contributions).

What’s the knock on effect?

Long term, maybe this is a good thing. I’m a cynic, but happy to be proved wrong.

Short term there’ll be a lot more agency and sub contractor work.

Also, a lot more fees for the pension funds.

Interestingly, the max fee allowed is 0.5% per annum.

I pay 1.5% for my curernt one. But I guess with auto enrolment pensions, if you get the cotnract, that’s a lot more business coming your way

Anyone hear anything since this announcement March 30th?

EDIT:
I checked Oireachtas website and newest update I can find is from PQs in May.

Zero new info here

In March I announced that Government approval had been given to the final design principles for the auto-enrolment (AE) retirement savings system. The Deputies may wish to note that a detailed explanatory paper on the new system has been published on www.gov.ie.

The system is expected to become operational in early 2024, and will automatically enrol approximately 750,000 employees at the outset. These are employees who are aged between 23 and 60 years, earning over €20,000 across all their employments, and who are not already enrolled in an occupational pension scheme. Consideration will be given in the future to the feasibility of broadening the system to include those outside the employee cohort, such as carers.

Contributions will be paid by employees through a payroll deduction and matched by their employers as a percentage of the employee’s gross income from employment. The State will also contribute a top-up financial incentive at a rate of €1 for every €3 saved by the employee.

A new Central Processing Authority will be set up to administer the system. This will almost entirely eliminate any administrative burden on employers and will facilitate a ‘pot-follows-member’ approach whereby workers will have one growing pension pot across employments and throughout their working life.

Commercial registered providers of financial investment services, contracted following an open tender process, will provide a well-balanced and diversified default investment fund, plus three other fund options for employees who want to invest their money at different levels of risk.

A lengthy public consultation process was conducted in 2018. Engagement is ongoing between my Department officials and key stakeholders. A comprehensive communications campaign will be conducted in 2023 in advance of the scheme’s launch to ensure that employees and employers are aware of and fully understand the details of the scheme.

ESRI report
FUTURE TRENDS IN HOUSING TENURE AND THE ADEQUACY OF RETIREMENT INCOME

Presentation

Future retirees likely to face lower homeownership

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This was from July. Now at end of August but still not announced. USA have a similar social security system, where delayed retirement credits can be earned until age 70.

So much for an expert Pension Commission report: basically all of their recommendations were ignored.

Still nothing new on auto enrolment since March 30th. Looking doubtful they’ll meet Jan 1, 2024 deadline for rollout at this stage.

EDIT: Checked Oireachtas again.

Thursday, 14 July 2022
123. Deputy Niamh Smyth asked the Minister for Social Protection if she will provide an update on auto enrolment; when the draft legislation is expected to be published; and if she will make a statement on the matter. [34929/22]

Written answers (Question to Social)

The implementation phase is well underway, with a project team in the Department of Social Protection progressing a range of elements in the overall plan. This work includes the preparation of a general scheme of a bill to establish the automatic enrolment system on a statutory basis.

To this end, I intend to bring a Memo to Government shortly seeking approval for the drafting of this legislation as a matter of priority, with a view to introducing the draft bill into the Oireachtas later this year.

Tuesday, 26 July 2022
1262. Deputy Richard Bruton asked the Minister for Social Protection if she has set a start date for the auto-enrolment of those with no employer pension into a pension top-up scheme; the initial rate at which contributions will be set; and the implementation milestones involved. [40979/22]

Written answers (Question to Social)

The implementation phase is now well underway, with a project team in the Department of Social Protection progressing a range of individual elements of a detailed project plan. This work includes the preparation of a General Scheme of a Bill to establish the automatic enrolment system on a statutory basis. I intend to bring a Memo to Government shortly to seek approval for the drafting of this legislation with a view to introducing the draft bill into the Oireachtas later this year.

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I was previously in favour of compulsory superannuation payments after experiencing the Australian system.

Now im not so sure. The rentier financial sector creams growth to marginal smounts through fees and charges. The government sees it as their plaything too…

It is understood Ms Humphreys is also recommending a flexible pension age, in which people who choose to work beyond 66 years of age receive higher rates of pension payment.

The weekly State pension would increase from €253 for 66-year-olds to €266 for 67-year-olds; €281 for 68-year-olds; €297 for 69-year-olds; and €315 for 70-year-olds - a combined 24% increase.

Long-term carers will be able to qualify for a contributory pension for the first time.

It is understood that the amount by which PRSI would have to increase to fund the initiative will only be determined later in the year, following an actuarial review.

However, a source has told RTÉ News that there would be no PRSI increase in the forthcoming budget, and possibly not in the following budget due to the cost-of-living crisis.

The new system would require new legislation and IT systems, so it is understood that the measures will come into force in January 2024.

The Gombeens have been throwing Paddy a Pump Fake for 20 years:

We need inward migration, to pay for your pension Paddy!

Transpires now that Paddy himself will need to stump up the extra PRSI, just to get a basic pension out of the kip :overfriendly: :whistle:

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… then so very close to the current peak of inward mass migration curve (while so many natives were close or had passed the finish line) they rolled out the mass injections and…

I think the 66 to 70 retirement option is a good compromise. They have the same in USA.

Along with Auto Enrollment from 2024 peope will hopefully have a decent pension to fall back on

I think, now, its more important than ever that people be forced to retire. Accommodation costs absorb pretty much all extra earning capacity. We have to think long term.

Dual incomes, at first, were very beneficial. Eventually it became necessity.

Who wants to leave their children and grandchildren a system where they must work until 70. There are calls in Australia to allow people who still have mortgages past retirement to work. It is seen as a way of helping these people out. Yet it will damage society in the long run. All because they refinanced.

In terms of renters being squeezed and then becoming a burden on the state. Being a burden on the state incentivises the state to repair the system. Having people work until 70 …