During Leo Varadkar's summer briefing last week he stated that the Government’s proposed pension reform will end “one of the biggest economic inequalities in Ireland”.
According to Mr Varadkar, two thirds of people working in the private sector do not have a pension other than a state pension.
“We’re fundamentally changing that so that people will have a pension scheme, people will pay in, their employer will pay in, and the Government will pay in, too.
“People will be able to opt out, but in other countries people tend not to opt out once they’re enrolled.”
Although he didn't put a timescale on it, it seems that 2019 might be the testing ground for some changes in the private sector. Up until now, the Construction Industry is the only sector where employee and employer contributions have been obligatory for a number of years through the CWPS scheme. Even this scheme has only recently been re-introduced after the suspension of the REA for 5 years.
This will be a big culture change, especially for small employers. It will become part and parcel of employment and will need to be costed in to everyone's plan.