Margaret Cox (Fianna Fail)

I thank all Senators who have spoken in this debate. It is interesting that there is a great communality between the views that have been expressed and a clear focus in regard to the problem that we are working towards solving in the future. I reiterate the point regularly made by Senator Terry when we debate the pensions issue in this House. It is appropriate for us to examine the National Pensions Reserve Fund, ask the questions and look for the answers. A significant amount is invested on an annual basis but the most important issue is how the money will be put to work and how important it is to the people who will be dependent on the fund for their statutory pension when they retire. We live in a changing world with people living longer, families becoming smaller, separation and divorce occurring more frequently and contract and part-time work becoming more prevalent. These issues must be put in context for future pension provision.

I refer to the difference between men and women. Women often earn less than men and have a broken career pattern. Reference was made to the importance of the social welfare system, which accepts PRSI payments from people looking after children and provides an income disregard for child care payments. Women also live longer than men, according to the recent Pensions Board report, which was issued as part of National Pensions Awareness Week. Men retiring at 65 years can expect to live until 81 while women who retire at the same age can expect to live to 84. There will be many sad widows throughout the State. However, we are all living longer and we must prepare for that. A total of 58.6% of the adult workforce is aged over 30 while less than 16% work in the agriculture, catering and tourism industries or are engaged in part-time or seasonal work. They do not have private pensions, which is a major problem.

The consensus is that the fund is a good concept and it is performing well. It needs to be scrutinised on an annual basis and it must have clear objectives, given the large amount involved but it represents the future of pensions. As Senator O'Toole stated, the fund is only one solution to the pensions problem and a range of solutions is needed. There must be choice and flexibility and, without the fund, we would not experience choice when we reach retirement age. I thank all those who contributed and I commend the motion to the House.