Margaret Cox (Fianna Fail)

I welcome the Minister to the House. I am delighted the Leader was able to arrange this debate on pensions in advance of the budget and Estimates. I compliment Senator Terry on many of the points she made regarding the pensions industry. My focus will be on older people.

The current pensions system is made up of two components, the social welfare pension and a supplementary pension. As a young person I was confused about those two elements. I was content that I would receive a pension from the State when I was 65 but it was not until I reached a certain age that I wondered what sort of lifestyle I could have with only a State pension. When one is beginning to earn money and later when one thinks about buying a house, the last thing on one's mind is a pension. Even if one thinks about providing for the future, it seems far away and not something one needs to worry about. By the time the question of a pension has become urgent and important one may have committed oneself in other areas such as mortgage or loan repayments and be unable to contribute sufficiently to a pension scheme.

The Pensions Board has a responsibility to educate the public. This education must begin in the schools so that people understand the need to provide for their own futures, both through the State pension and a supplementary work-related pension. We must understand that we need enough money as we get older to continue to provide for our needs. We are all living much longer. We cannot expect to die in our 50s. Many of us live into our late 60s, 70s and 80s and we must be able to provide for that. Young people think the State will provide a pension, which will be sufficient for their needs at the age of 65. How many 20 year olds think 40 year olds have had it? It is important for us to realise, and to convince our children, that the future must be provided for, what that will cost, and how much of a challenge it will be.

Senator Terry and the Minister both referred to the personal retirement savings accounts. I am delighted it is recognised that they have been a very successful initiative. Although many people derided the former Minister for Finance, Deputy McCreevy, for his concept, they have encouraged the most unusual people to save.