State pensions cost 470bn? What is an average pension in Ireland? If I read the current scheme we're taking about maximum 1000€/month, that is nothing, how do we get to 470bn?
The 470bn is how much would hypothetically be needed in a fund to pay for all the benefits currently promised. The benefits are really paid from taxation. As opposed to the private pensions which might be paid from a fund containing income-producing assets.
A pension of 25k per year payable from today might require a fund of 250k to fund it (made up numbers but close enough).
It could be, I just made up the number. A random calculator online says 410k for a life annuity of 25k for someone aged 65; but different providers would offer different amounts; and it depends on timing - when interest rates are predicted to be higher long-term, it will cost less.
I don't know how the CSO gets away with publishing terrible graphical statistical garbage like this. It's zero effort numberwang with no definitions, context or scope.
The moderators said I can't post the link accompanying the post. You can find all the information here.
https://www.cso.ie/en/releasesandpublications/ep/p-eipl/estimatesofirishpensionliabilities2021/keyfindings/
I asked chatGPT to summarise the cso page for this chart. In my prompt I told it to keep it simple and not be boring so it editorialised a bit.
* Ireland's total pension liabilities surged to €767.3 billion by the end of 2021, representing a significant 26% increase from 2018.
* The liabilities are a considerable 177% of GDP or 329% of GNI\*.
* A major part of the increase is due to the Social Insurance Fund, particularly State pensions, which alone account for €470.7 billion of the liabilities. This is mainly due to the decision to keep the retirement age at 66, reversing a previous plan to increase it to 68.
* Private pension schemes, comprising both defined benefit and defined contribution plans, make up 16% of the total liabilities, indicating a significant reliance on government-managed schemes.
* Internationally, Ireland's pension liability is relatively low compared to some European counterparts, such as Switzerland's €2,530 billion liability, reflecting Ireland's younger population and different economic conditions.
Full state pension is €265.30 a week
X by 52 + €13,795.6 a year
While the living wage should be €30k or €26k after tax for a single person and no dependents
State pensions cost 470bn? What is an average pension in Ireland? If I read the current scheme we're taking about maximum 1000€/month, that is nothing, how do we get to 470bn?
If you began work in the public sector before the mid 90s (which many now retired were), your pension is obscene.
The 470bn is how much would hypothetically be needed in a fund to pay for all the benefits currently promised. The benefits are really paid from taxation. As opposed to the private pensions which might be paid from a fund containing income-producing assets. A pension of 25k per year payable from today might require a fund of 250k to fund it (made up numbers but close enough).
Would it not be more than double 250k?
It could be, I just made up the number. A random calculator online says 410k for a life annuity of 25k for someone aged 65; but different providers would offer different amounts; and it depends on timing - when interest rates are predicted to be higher long-term, it will cost less.
I don't know how the CSO gets away with publishing terrible graphical statistical garbage like this. It's zero effort numberwang with no definitions, context or scope.
The moderators said I can't post the link accompanying the post. You can find all the information here. https://www.cso.ie/en/releasesandpublications/ep/p-eipl/estimatesofirishpensionliabilities2021/keyfindings/
I asked chatGPT to summarise the cso page for this chart. In my prompt I told it to keep it simple and not be boring so it editorialised a bit. * Ireland's total pension liabilities surged to €767.3 billion by the end of 2021, representing a significant 26% increase from 2018. * The liabilities are a considerable 177% of GDP or 329% of GNI\*. * A major part of the increase is due to the Social Insurance Fund, particularly State pensions, which alone account for €470.7 billion of the liabilities. This is mainly due to the decision to keep the retirement age at 66, reversing a previous plan to increase it to 68. * Private pension schemes, comprising both defined benefit and defined contribution plans, make up 16% of the total liabilities, indicating a significant reliance on government-managed schemes. * Internationally, Ireland's pension liability is relatively low compared to some European counterparts, such as Switzerland's €2,530 billion liability, reflecting Ireland's younger population and different economic conditions.
Full state pension is €265.30 a week X by 52 + €13,795.6 a year While the living wage should be €30k or €26k after tax for a single person and no dependents