Tax Strategy Group projects annual PRSI shortfall of €2.36 billion per year by 2030, rising to €21.1 billion by 2070
Tax Strategy Group projects annual PRSI shortfall of €2.36 billion per year by 2030, rising to €21.1 billion by 2070
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Tax Strategy Group papers have been published here, been glancing through them: https://www.gov.ie/en/collection/d5b41-budget-2023-tax-strategy-group-papers/
An additional quote here:
>The Social Insurance Fund faces demographic challenges which will operate independently of the impact of fluctuations in the economy. The main driver of the increase in overall projected expenditure is pension-related expenditure. The report of the Pensions Commission found that the ratio of the working age population to the older population in the State is changing. In 1991, there were 5 working age people to 1 pensioner, and it is projected that this ratio will fall to 3.5 to 1 by 2031 and to 2.3 to one by 2051.^9
>In addition, people are living longer than previous generations and as a result, the duration of State pension payments has been increasing steadily over time and will continue to do so.
Guess we’re going to be paying for not raising the pension age.
€21bn in 2070 is probably not all that much for then?
2070 is too far away to even think about. The 2050 figure is more interesting, along with the massive jump in pension costs between now and then.
However, it is clear despite the assurances of SF, that funding future pensions and other social welfare increases will require large increases in tax. Their economic illiteracy, and the shameful capitulation of the *elected government* to the populist demands of these charlatans, will cost us all dearly in years to come. We need a proper adult conversation about how a smaller number of workers cannot be asked to fund the large number of people who are due to retire in coming years while still relatively young (and that includes me).
What did MLM say during the last election, oh yeah “the demographics will look after themselves “…….
The pension timebomb is really ticking.
If you are working the you really need to get a private pension, if you don’t have one.
Pension age will be 100.