Feather beds for wealthy retired

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Deiseblue said:
Well not really - the approx 9% differential you referred to earlier can be attributed to the strong sterling performance against the euro , a factor that be regarded as a constant.
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Eh, no. If sterling was weaker against the euro the differential between Irish and UK pension benefits would be higher - not lower.

The recent strong sterling performance masks the extent of the difference as it flatters the relative value of UK pension benefits.
 
Sarenco said:
Eh, no. If sterling was weaker against the euro the differential between Irish and UK pension benefits would be higher - not lower.

The recent strong sterling performance masks the extent of the difference as it flatters the relative value of UK pension benefits.
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I quickly realised that and edited my post !

As the current UK state pension appears to operate on a two tiered basis it is instructive to note that Mr. Duncan Smith has stated that the putative one tiered figure of stg 155 operative from next year will not be an increase on the current amount but will simplify matters.

It is of course impossible to compare these figures given the differing tax systems in both countries but on the bright side it would appear that we have managed to bring the differential down from 35% to single figures !
 
Ah, fair play to you. Sorry, I didn't see your edit before I posted.

The current UK system is fairly complex but if you add the guarantee credit to the basic pension you get to around £150 per week. Add UK inflation and you get to around £155. The new single tier system in the UK is intended to be broadly "cost neutral" from an exchequer perspective but will generally not favour younger workers.

In any event, a difference of even 9% is still massive, particularly when you factor in our very low local authority or property taxes for individuals.

Without adjustment, we are projected to spend around €15 billion per annum on old age and public sector pensions by 2026. Add in the higher healthcare costs associated with an ageing population and the problem becomes clear. Project out 20 years further, and the situation looks completely unsustainable without adjustment.
 
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It always amazes me how people only compare Ireland with the UK, there is a vast world out there right on your doorsteps. When they were talking about where to put the new hospital it was only compared with the US and UK. So Anglo centered in thinking.
 
In round figures, around €8 billion - €3 billion on public sector pensions and €5 billion on OAPs (both contributory and means tested).
 
I suppose Uk is the best comparison we can see.
From my (limited) knowledge UK are already hitting the worker to pensioner ratio, whereas we still have a younger population. We have more time to adjust.
There are options if we can,t afford reasonable state pensions
eg. leave pensions at current rate,that in time reduces their real value,
eg. those who have very high private pensions reduce their state pension by some percentage.

I would think there are better ways than either of the above, both above are not palatable.
 
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