Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

On the timescale, based on other countries that have done this, such as the United Kingdom, New Zealand and Australia, people must be given a number of years' notice that this will happen because employers have to factor it into their business plans. As wage demands are being made, for example, these matters must be factored in. What they did in Australia, for example, instead of getting a 3% or 4% pay rise every year, was to provide one percentage point of that 3% or 4% towards the pension system.

Nobody was ever worse off in a year but instead of taking the full 3% or 4% pay increase, 1% of it went into the pension fund. That is the type of thing I envisage. Based on what other countries have done, it takes three to four years before the first set of accounts is opened and it takes approximately ten years to phase in and phase up the contributions. The UK did not bring everybody in on year one. It took in different sectors one by one. These are the types of issues that must be worked out and agreed, if possible.

I am convinced it must be done. I am anxious to ensure that nobody suffers poverty in retirement and that everybody, particularly in the private sector, at least has the opportunity to retire on a pension that is roughly equivalent to half his or her salary, just like people in the public service can at present.

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