Our sister company Advisors.ie has been working with the Irish News of the World, presenting their ‘money saving expert’ piece every week since January.
This week we covered the area of pensions and the necessity of pension provision.
Currently there are just over four people working for every pensioner, it has been calculated that by 2036 that this may be as low as only two people working for every pensioner.
That would be a massive problem because it would mean that most of the taxes raised would be going toward provision for an ageing population.
The new issue is that we may find it causes a pincer on our public finances as we struggle to pay back the money we have borrowed from many sources such as the IMF and EU, this move towards a lower pensioner to worker ratio won’t just arrive magically in 2036 rather it will manifest over time and as people live longer it will reach a tipping point. We are cursed in a way by living in interesting times!