Pension coverage was greatest among workers aged 45-54 years, where over three-quarters of those in employment (76.8%) had supplementary pension coverage.
Of those workers with an occupational pension from their current employment, over one-third (33.8%) identified their pensions as a ‘defined-benefit’ pension. while 63.9% had a ‘defined-contribution’ pension.
For those workers with no occupational pension coverage from their current employment, more than half (52.2%) stated that their employer did not offer a pension scheme.
Affordability
Of employees with no supplementary pension cover, 35.3% cited affordability as one of the main reasons, while 37% stated that they never got around to organising it.
The State Pension was cited as the expected source of income on retirement for 57.6% of workers with no pension coverage, while one in 12 (7.9%) stated that they would rely on savings or investments.
Professionals had the highest pension coverage rate (86.4% of those working in this area), whereas just over one-third (34%) of workers, whose broad occupational group was sales and customer service, had pension coverage.
Meanwhile, the total accrued-to-date liabilities of occupational pension schemes in Ireland was estimated at 186% of Gross Domestic Product (GDP), or 306% of modified Gross National Income (GNI) at the end of 2018, the CSO said.
The total liability equated to €607.9 billion, of which:
- State pension schemes amounted to €359.2 billion,
- Public-service defined benefit schemes made up 25% of the total liability (€149.6 billion), and
- Private pension schemes equated to 21% of the total liability (€99.1 billion).
Estimates
The CSO Estimates of Irish Pension Liabilities 2018 publication brings together data on occupational pension schemes and shows the amount owing to households by private employers and Government at the end of 2018, based on the pension benefits they had accumulated by that date.
Statistician Ciara O’Shea said that, as in many countries, a significant portion of the liability relates to Government-managed schemes, which totalled €508.8 billion or 156% of GDP at the end of 2018.
“Just over two-thirds (€359.2bn) of the Government-managed schemes’ liabilities relate to the State pensions, defined as the State Pension (contributory), the Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension, and the Invalidity Pension, which are pension schemes available within the Social Insurance Fund.
“The remainder (€149.6 billion) relates to public-service defined benefit occupational pension schemes,” she said.
Ireland’s pension liability is low compared with some European countries, illustrating the relatively young population.
The total accrued-to-date liability of pension providers in Switzerland was €1,973 billion at the end of 2017, equating to 316% of Swiss GDP. In Latvia, the liability was €59 billion or 218% of GDP.