Mr. Henry Gaynor:

As far as I can gather, the first year will not be so bad because one is entitled to one's stamps, as we call it. It is years 2 and 3 that will be the problem when the State raises the retirement age from 66 to 67 and 68, because one will be means tested. In our case we will have a small pension from work, and people may have put money aside in AVCs in order to boost income. We have ticked all the right boxes and followed the State's advice to prepare and provide for retirement. Unfortunately, when we reach retirement the State wants to chop its piece out of it.

I can see the following problem. The State has talked about getting everyone to have their own private pension. If the State is doing what we have outlined, it will be very difficult to convince a person that he or she will benefit down the line. A person will think that if one provides one's own pension the State will take a lump of it when one reaches 66 or 67 years. With regard to the pension levy, a lot of us have AVCs but the State has taken a lump sum out of it over four years. That situation will have a negative impact on us as well. In one sense the Government encourages people to provide for their retirement. Unfortunately, when people follow its advice they discover that having a pension works against them. As a result, one is left wondering, "Why bother?".