The Irish pension system should be redesigned to allow both public and private sector workers to provide for their retirement while maintaining exchequer savings in the area and to create a more equitable regime for savers, the Irish Association of Pension Funds (IAPF) has said.

At its annual benefits conference on Wednesday, the IAPF highlighted that the government’s plans to implement a cap of €60,000 on pensions that receive state support could be applied to existing pension savings to ensure a ‘sustainable, fair and simple pension system.’

IAPF chairman Maurice Whyms said: “The IAPF contends that this measure has the potential to provide an equitable platform for retirement planning. Anyone who wants and can afford a pension income in excess of €60,000 can then provide it for themselves.

“This measure could be introduced in a manner that could ensure the same rules apply to all those saving for retirement – whether they are politicians, public servants, private sector workers or self-employed.”

The IAPF also emphasised the need for greater visibility and transparency in the pension system to encourage people to save and to increase confidence.

“There is no room within the sector for anything that is less than best practice. Government can also play a positive role in reducing unnecessary or outdated regulation that adds to the cost of providing pensions,” Whyms added.

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