The news that pensioners in Ireland will receive a 3.5 per cent boost to their state pension payments has been welcomed, although the National Pension Helpline (NPH) has warned that this "doesn't go far enough".

Pensioners in Ireland are expected to see a €10 boost to their state pension payments next year, bringing the maximum personal state pension rate for those under 80 to €299.30 per week.

This represents a 3.5 per cent rise, which is slightly above September’s annual inflation rate of 2.7 per cent.

However, the NPH argued that whilst the modest increase is welcome, it will not do enough for those who rely on the state pension, with pensions expert, James Dorrian, warning that the state pension alone is still "far from being enough" to meet rising costs, which have "soared" since 2022.

“This boost will mean retirees and their families will be able to plan finances with a bit more confidence, particularly in the current cost-of-living climate," he stated.

“However, while this year’s increase is again higher than the annual inflation rate, we must be mindful that the state pension alone is simply insufficient for most people who rely on it.

“Weekly payments of just under €300 per week work out at around €15,563 per annum, which is still well below what many people need to maintain their standard of living, if they do not have an additional pension.”

“Electricity prices soaring by 69 per cent since 2022 is just one example of how people have less in their pockets,” he said, also pointing out that the government parties had previously pledged to raise the weekly payments to €350 over the course of their term.

Whilst Dorrian acknowledged that the launch of auto-enrolment in Ireland will provide "hundreds of thousands" of people access to an additional pension fund in the future, he warned that "the scheme has its flaws and will not be a cure-all".

“There are also arguably much better products out there already for employees who wish to contribute higher percentages of their salaries with tax relief to save for retirement," he added.

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