Pensions timebomb: Workers will have to pay 5pc of salary in new schemeEmployers would also be expected to match the 5pc contribution to boost the pension pots of all workers under a new mandatory scheme. Two-thirds of private sector workers have no occupational pension to supplement their State pension and many will face hardship in old age. By comparison, the average OECD worker gets a pension worth almost 53pc of their wages, while the rate is 58pc among the EU28. For the squeezed middle worker on a salary of €53,388, the State pension is worth just under 23pc of their earnings. Read more: Comment: Auto-enrolment pensions scheme is a hassle-free way of getting young on board However, the effect of an additional scheme would mean they got 61pc of their earnings, or €32,406.

Source: Irish Independent December 12, 2017 02:26 UTC