Michael Mullins (Fine Gael) | Oireachtas source

I welcome the report published yesterday by the Minister for Social Protection, Deputy Burton, on private pension scheme charges, and we should discuss the issue in this House. It is very obvious that there is a wide variation in charges and individual pension schemes are particularly expensive. The report indicates that a final pension fund of ¤400,000 could lose up to 30%, or ¤120,000, in charges. Occupational scheme charges are more reasonable but anything up to 15%, or ¤60,000 from ¤400,000, goes in charges.

We are in a time when people are living longer and it is very important that people plan for and have decent pensions. It is particularly worrying that such a large portion of a pension pot is going on charges. I am concerned that individual members of schemes and pension scheme trustees are not particularly aware of the level of charging that is taking place. We must have a debate on the issue and ensure the pension industry is properly regulated. People should not be losing unnecessarily large chunks of their pension pots.

In commissioning this report the Minister has done a great service for individuals and the pension industry. It is a report worthy of much debate and consideration in the House. I hope we will get a much better regulated pension industry, with more realistic charges so that people will not lose such a large amount of their pension investment. In these very difficult times we must encourage people to invest in pension schemes but I am worried that many young people are now either not in a position or are not inclined to invest in pensions for the future, given how the pension industry has performed over a number of years. It is particularly worrying as people are living longer; we must provide for people's livelihood and income into the future.