The Republic must introduce flexible arrangements that will encourage older people to continue working up to and beyond retirement age, an international conference on ageing was told in Dublin yesterday.
Speakers said obstacles such as health, pension schemes and attitudes toward the elderly should be addressed and further research conducted into the productivity and skills that an older workforce can offer.
The conference heard from a number of international experts on pension issues and the need to eradicate age discrimination in the workforce if the Republic's economy was to continue to flourish.
The Irish Longitudinal Study on Ageing (Tilda) said the failure to retain fit and healthy older workers in the labour force meant people could fail to realise their full potential and could suffer financial hardship in retirement.
"Policymakers in Ireland need to understand that an enormous pool of talent and experience that can benefit the economy and society may be lost by the failure to introduce appropriate policies with regard to pensions, healthcare and social welfare specifically geared to the needs of older people," Prof Brendan Whelan of Tilda said.
Forecasts from the Economic and Social Research Institute suggest that the current ratio of four working people for every one person over 65 years will fall to two and a half within 20 years and one and a half by the middle of the century.
"These figures represent a two-pronged threat in the form of the cost of meeting social welfare costs from a smaller working population and also the shortage of labour that will result. We cannot assume that immigrant workers will make up the labour shortfall," Prof Whelan said.
Currently older people in the Republic have one of the highest rates of living in income poverty in Europe. Some pensions come complete with restrictions that make it impossible for older people to work to supplement their income.
Phased pensions schemes are seen as an incentive to keep people in the workforce for longer. The introduction of these schemes would allow workers to receive a pension and continue in employment past retirement age.
Prof James Banks of University College London told the conference that the fact that many future retirees were less likely to have defined benefit pensions might lead to an increase in labour market participation by older people.
"Policies to raise labour market participation need to be much broader than just changing the State pension age. Much more work needs to be done on how health, disability and labour market participation interact as households move into their 50s and 60s," Prof Banks said.
Donal Casey, chief executive of Irish Life Corporate Business, said Ireland was in a better position than most other countries to cope with an ageing workforce.
"Ireland has a comparatively young population and we are in an immeasurably better position than countries such as Germany and Japan which are already suffering the consequences of an ageing population.
"We have time to prepare for the pension funding challenge - initiatives such as the National Pensions Reserve Fund have been taken by the Government, while the pensions industry itself is taking initiatives that should ensure this country does not suffer from a 'pensions time bomb' down the line," Mr Casey said.
He added that policies needed to be enacted to make it easier and more attractive for older people to continue in employment beyond retirement.
