The Society of Actuaries in Ireland has published a research report on the Financial Sustainability of the State Pension in Ireland. The report, produced by Milliman, was commissioned by the Society and PublicPolicy.ie, with a view to informing debate and public policy decisions.
Milliman concluded that the State pension is not sustainable in its current form and would need revision in order to make it sustainable. As part of their research, Milliman also considered what aspects of the current State pension could be revised in order to make it sustainable in the longer term. Their report points out that all of the possible options considered involve difficult policy choices.
Commenting on the report, the Society noted that some of the options considered, if implemented in isolation, could greatly undermine the objectives of the State pension, particularly in relation to its role in limiting poverty in retirement. As a result, steps needed to achieve sustainability may also necessitate other measures, such as facilitating other means of retirement income.
Society calls for debate and action:
The Society believes that the issues highlighted by Milliman need full and proper attention and debate. Action needs to be taken by policymakers to prevent a potentially severe situation arising in future.