The Irish Government should develop a mandatory pension system over the next five years, rather than introduce a "soft mandatory" approach such as auto-enrolment, a group of actuaries have urged.

The Society of Actuaries in Ireland said that a mandatory approach would be the best way of increasing private pensions coverage and improving the adequacy of pensions for individuals in Ireland.

The Society said that it was "conscious" that auto-enrolment in Ireland may appear "more palatable" than a mandatory system in the current economic environment.

However, the body said: "In our view a mandatory system is superior to an auto-enrolment regime for a number of reasons."

According to the Society, a mandatory regime would be easier to run than an auto-enrolment regime as it would erase opt-in and opt-out issues.

Also, in light of "international experience", the body said that a mandatory system would be more effective at increasing private pensions coverage than auto-enrolment.

Since it would take at least five years for the mandatory system to be developed, the Society stressed that the Government should start decision-making and planning promptly.

First published 12.02.014

monique_simpson@wilmington.co.uk