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Report warns of €324 billion pension & welfare funding gap

An unpublished report is sounding a warning about funding for State pensions and social welfare...
Newstalk
Newstalk

09.33 12 Sep 2012


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Report warns of €324 billion p...

Report warns of €324 billion pension & welfare funding gap

Newstalk
Newstalk

09.33 12 Sep 2012


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An unpublished report is sounding a warning about funding for State pensions and social welfare in the future.

According to the Irish Times the research highlights a gap worth €324 billion between State liabilities and the money that is there to meet them.

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The research was commissioned by the government.

The review of the Social Insurance Fund was completed in June.

The study estimates that without policy change the shortfall will rise to more than 6% yearly by the middle of the century.

It adds that the fund deficit is likely to increase pressure in the short term for measures to close it in the forthcoming Budget.

Options include reducing outlays by curbing entitlements and an increase in PRSI rates.

The annual shortfalls of the Social Insurance Fund are made up by tax revenues from the Exchequer.

But the report says that the amount of aid from the Exchequer will treble by 2030 and increase 8-fold by 2040.

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