International Comparisons
A Balancing Act: Opening Statement by Ms. Mary Coughlan,
Speech
March 2004
Ms. Mary Coughlan, T.D.
Minister for Social and Family Affiars, Ireland
A
Balancing Act: Achieving Adequacy and Sustainability in
Retirement Income Reform
Brussels, Belgium
Firstly, I would like to say how sorry I am that I cannot join you today at your forum because of pressing EU business. The theme of the forum, achieving adequacy and sustainability in retirement income, is very topical and deals with issues which are of very serious concern to many countries. Over the last year or two we have been grappling with these issues at EU level and this time last year a joint commission and council report was published which assessed the position in all EU countries.
As we all know over the coming decades the developed world faces a significant acceleration of demographic ageing and this brings with it additional costs which need to be managed. In these circumstances, it is perhaps not surprising that countries are looking at their pension systems and are implementing reforms. In some countries we are seeing the introduction of a funded element into schemes which, heretofore, have provided generous earnings related benefits on a pay-as-you-go basis. In my own country, which relies heavily on occupational and private pensions coverage to provide the earnings related element of our pensions system, we can see a drift from the traditional defined benefit schemes to defined contribution schemes.
Pensions are a complex issue and reform measures need to be carefully considered and thought out. I think the various sessions planned for today clearly demonstrate the complexity of the issues involved and the dilemmas faced by policy makers in trying to balance competing objectives of adequacy and sustainability. At the end of the day, pension systems must be sustainable if they are to provide adequately for our old people in the future.
I hope you have an enjoyable day and I look forward to hearing of the conclusions of the forum which I am sure will make an important contribution to the debate on pensions and the reform process.