A Social Report for Ireland Volume II - the NESC Website

186Policy commitments acknowledge the need to address these issues and the Green Paperon Pensions provides a comprehensive overview with options for reform. Particularattention needs to be paid to vulnerable older people on low incomes. Many women aredisadvantaged in relation to access to adequate pensions. Further consideration shouldbe given to reforms which meet the needs of women as well as men (National Women’sCouncil of Ireland, 2008).In the light of the economic recession the need to address the pensions issue has becomeurgent and even more important. As stated earlier, the OECD has identified that Irelandhas the worst investment performance for private pensions among the OECD countries,and has also a comparatively high level of income poverty among pensioners. Irelandhas a high reliance on tax incentives, but these are expensive and are not well targetedon lower earners or younger workers (OECD, 2009c). It would seem useful, in light ofthis analysis and the recession, to give consideration to three overriding goals – povertyprevention, income replacement and sustainability. As suggested by NESC (2009: 93), afundamental reform of pensions policy is required with the move towards a universalstate pension proposed. This would include a significant increase in the state pensionavailable on a universal basis, the option of a contributory element and significant reformof the existing system of tax reliefs. Any proposal needs to take into consideration thefunding challenges associated with public pension provision, as outlined earlier.8.5 Work and Participation8.5.1 Measuring Older People’s Work and ParticipationParticipation in meaningful activity is a fundamental element of well-being. For manythis involves participation in paid and unpaid work, and participation in education. 117 Forolder people there may be less opportunity to participate in these activities. 118 Here wepresent two components: work and education.Two indicators are used to assess the work component for older people: the labour forcestatus (ILO) of people aged 65 and over; and the average exit age from the labour force.Labour Force StatusThe majority of people aged 65 and over are not in the labour force – 85 per cent of menand 96 per cent of women aged 65 and over, see Figure 8.16. As expected, participationin the labour force declines with age with one quarter of 65-69 year old men inemployment compared to 9 per cent of over 70 year old men; the comparative figuresfor women are 10 per cent compared to 2 per cent. Older women in employment aremore likely to be in part-time work, compared to older men who are more likely to be infull-time work.117. As noted in earlier chapters, participation in one’s community and in decision making is also important to well-being. Thesedimensions of participation are captured in ‘Community and environment’ and ‘Democracy and values’.118. There are a number of reasons why such opportunities may not be available to older people, including ageism.