Old age pension to lose half value
THE IRISH should expect cuts of up to 50pc to the real value of the State's old age pension by the time they retire, new research has outlined.
The Trusted Advisor Group forecasts that the worth of the State pension will drop well into the foreseeable future. It will be mainly affected by stealth cuts and rising inflation.
"Many people think that the State pension will be sufficient to support them in retirement, but any assessment of the expected spiralling cost of this benefit will conclude that, at best, it will be cut consistently over the next 20 years, potentially by up to 50pc of the current value," said Trusted Advisor Group chief executive Paul Sutton.
"Stealth cuts in social welfare benefits have already commenced through changes to the qualifying criteria and we believe further changes are in the pipeline.
"We don't wish to worry those dependent on this payment, but equally we would like those who haven't reached retirement age to realise that they cannot rely solely on this payment to provide any reasonable sort of lifestyle in retirement," he added.
The OECD is carrying out a review on the outlook for pensions.
And a spokesperson for the Department of Social Protection said savings had to be found within the social welfare system.
"The basic rate of pension has not changed and has been maintained at 34pc of average earnings," he added.