A lot of questions about the Government's pensions plan

It's no surprise that the Government has decided to increase to 68 the age at which workers will, in the future, become entitled to the state Old Age Pension.While some people expressed shock at the move, it is, nonetheless to be welcomed on the whole, as is the fact that part of the Government's plan includes a new "auto-enrolment" supplementary pension arrangement. Too many workers in this country have no private pension schemes in place and after retiring, will have only the state pension to live on - and while we have seen the value of private pensions decimated in the current economic crisis, one has to hope that in the future, there will be some recovery.Altering the current pension arrangements is not a Government reaction to the current recession: it is a pragmatic long-term step that has had to be taken because of the changing age profile of the Irish population.We all know - and welcome - the fact that life expectancy is growing. However, the downside of that is that the cost of supporting a massive elderly population will, without some planning, leave future generations of workers facing an unmanageable burden - and that's not at some distant point in the future: that will happen within less than 20 years.Last year, a presentation by the Irish Pensions Board revealed that in 2006, there were 4.3 persons at work for every person in this country aged over 65, but that by 2026 there will be just 2.7 people at work for every person aged over 65 - and that by 2056, there will be a mere 1.4 workers for every person aged over 65.Quite apart from the fact that the working population will not be able to support the retired population unless action is taken, there's also the fact that with old age comes more illness and infirmity, and, consequently, greater national healthcare costs - something which will also fall on the shoulders of the working population.As things stand, there are many Irish people who choose to go on working after 65, primarily self-employed people.There are many others who would like to go on working after 65 but who don't currently have that opportunity. There is indeed immense value to society in retaining "in use" the skills and knowledge and experience of post-65 year old workers.But there are some issues of concern. What is to become of those unable to work after 65? If they are not eligible for the state pension, will they be eligible for disability benefits?What is to become of those who are willing to work after 65 - but whose employers don't want to keep them on?There will be many of those, as, let's face it: the cost to many employers of keeping on for a further three years a 65 year old, who is at the top of the payscale, will be much greater than the cost of bringing in a lower-costing graduate or school leaver to do the same job.And then again, what happens to employees who are earning their living in sectors where the physical demands may be beyond those of advancing years such as blocklayers, scaffolders, steeplejacks, nurses, hairdressers, waiters - but will it be fair to expect people coming close to their 70th birthday to work at the same rate as 30 year old colleagues? And is it fair to force employers to keep them on?However, what will such people live on, between 65 and 68?Will the Government be prepared to pay them jobseekers' benefit?The state is likely to alter the contracts of employments with its own workers: extending their working years to take them up to the age of 68; the public sector unions will thrash out arrangements to look after those in jobs not suitable for those approaching 70. But will anything be done to make the private sector step into line on this one?Will private sector employers be able to implement the work contracts currently in place with employees, giving their final employment date as being on their 65th birthday, or will the state make it compulsory for employers to continue employing these workers until they have reached the new retirement age?Let's all hope that the arrangements being put into place now are tied down properly: otherwise, there could be a lot of people who are currently living in negative equity, paying for childcare and cars - and who may in the future have to face into a three year period of no income at all.The detail of these new pension arrangements need to be tied down, both for workers, and for employers.