Joan Burton (Dublin West, Labour)
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Question 278: To ask the Minister for Social and Family Affairs the percentage of those in the workforce under 30 who have a private pension; his views on introducing measures to increase the numbers under 30 with a private pension; and if he will make a statement on the matter. [27545/07]

Martin Cullen (Waterford, Fianna Fail)
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In the most recent pension coverage statistics, from the Quarter 4 2005 CSO Quarterly National Household Survey, coverage of persons in employment aged 20-29 was 38.9 per cent. This represents an increase of 3.4 percentage points since the previous detailed coverage survey in Quarter 1 2002, and is above the ultimate target level for the age group set out in the National Pensions Policy Initiative in 1998 (35 per cent). However, improving coverage among younger workers is one of the key priorities for pensions policy. This is reinforced by the increasing importance of defined contribution pension arrangements, where early contributions are particularly important in securing an adequate retirement income. Recent research suggests that people without pension coverage in older age categories mainly 'never got around' to taking out a pension, so establishing a savings habit at an early stage is essential to promote pensions coverage and adequacy. To date, efforts in this area have focussed on promoting pension awareness and take up, with young people being a particular target of initiatives under the National Pensions Awareness Campaign. This promotional work will continue.

The Green Paper on Pensions, published on October 17th, puts forward four reform options which are largely focussed on categories with low coverage at present, including younger people. As the House is aware, the Green Paper is now open for consultation and when this process is completed the Government will decide on a framework for long-term pensions policy.