Since the economic downturn in 2008, many commentators and governments have focused on the budgetary consequences of the financial downturn. One most important issue is the unsustainable system of our Social Welfare Pension Schemes.
Currently the State old age Pension is available to both contributory and non-contributory retirees (subject to conditions). The benefit figures, based on the Finance Act, are Contributory / Transition.
Personal rate @ €230.30 per week (€11,976 P.A)
Personal and Adult Dependants (Over 66) @ €436 per week (€22,703 P.A)
Based on the C.S.O population projections
| AGE | 2011 | 2026 | 2036 |
| 65+ | 532,000 | 850,000 | 1,131,000 |
On these projections, the number of 65+ will dramatically increase over the coming decades; by 2036 these figures are projects to double from today’s numbers.
Our population is ageing, we are living longer, Life Expectancy at Retirement age is now projected to 80+.
My question is;
Can the State continue to provide this level of Social Welfare payment?
Will the retirement age need to rise?
Can I afford to retire?
In conclusion, don’t expect the State to fully provide you with a pension, now is the time to act – talk to your Financial Advisor.
