05/05/2005
Pensioners' Incomes and Replacement Rates in 2000
By Gerard Hughes and Dorothy Watson (ESRI)
Embargo: Thursday 5 May, 2005 at 00:01 a.m.
Members of the Press are invited to attend a Press Briefing, to be held on Wednesday, 4 May 2005 at 11.30 a.m in the ESRI, 4 Burlington Road, Dublin 4.
- What are the sources of income during retirement for pensioners?
- How effective are the public and private components of the pension system in providing income during retirement?
- How do pensioners’ incomes compare to the incomes of the working population?
These questions are considered in this publication Pensioners’ Incomes and Replacement Rates in 2000. The authors conclude that:
- The public pension system is the main source of pensioners’ incomes and the private pension system is a minor source of retirement income;
- The public pension system provides pensions for 91 per cent and the private system provides pensions for 33 per cent of pensioner units;
- The percentage of pre-retirement income replaced by pensions and other sources of retirement income in the first year of retirement for pensioner couples meets the income target suggested by the Pensions Board but for single pensioners it falls somewhat short of the target;
- The private pension system provides virtually no retirement income for pensioners in the bottom three-fifths of the pensioners’ income distribution;
- The favourable tax arrangements for the private pension system predominantly benefit higher income taxpayers;
- This is a serious inequity which ought to be addressed in an official review of what value for money is being received for the substantial tax reliefs the State is providing to support and develop the private pension system.
For further details contact:
Gerry Hughes or Dorothy Watson (ESRI) at 01-6671525 or by email to Gerry.Hughes@esri.ie or Dorothy.Watson@esri.ie.
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