New research has recommended that Ireland offer more early retirement incentives in the agriculture sector.
The research, undertaken by Maynooth University and Teagasc, examined the design of social security pension systems for farmers in five European countries to identify gaps in Ireland’s current system and suggest practical solutions.
In 2023, approximately 45% of those working in the agriculture, forestry and fishing sector had supplementary pension coverage, compared with 88% in the financial services sector.
Senior research economist in the rural economy and development programme at Teagasc Anne Kinsella said a significant portion of farmers have limited pension coverage, with many not planning to retire formally.
“Farmers face unique challenges regarding pension provision due to lower and variable incomes, the intergenerational nature of farm ownership and cultural attitudes towards retirement,” she said.
Pensions
The research explored the current state of pension coverage among Irish farmers in comparison with EU counterparts, examining various national approaches to farm retirement schemes and drawing lessons to enhance pension provisions in the agricultural sector.
To assess Ireland’s position relative to best practice, researchers evaluated pension systems for farmers in Austria, Finland, France, Germany and Poland.
These countries, all members of the European Network of Agricultural Social Protection Systems (ENASP), offer tailored social welfare schemes for farmers, serving as important benchmarks.
Assistant professor of accounting at Maynooth University Michael Hayden said each country has its own approach to farmer-specific social insurance.
“In contrast, Ireland operates a single social security system with a general distinction between self-employed and employed workers. Farmers are classified as self-employed, but with some limitations in the definition for social insurance purposes.”
Recommendations
Comparing other EU countries, the researchers found key lessons for improving pension provisions and facilitating generational renewal in agriculture:
Offer early retirement incentives: Finland’s model shows how financial support can ease the path to retirement.Boost private pension uptake: address affordability and trust barriers with financial planning support and education.Make PRSI contributions mandatory for farm workers: ensure young farmers and family members build up entitlements from the start.Register spouses and partners for PRSI: independent contribution records reduce reliance on means-tested supports.Provide transitional supports: help current farmers without adequate coverage close the gap.Review the means test requirements for non-contributory old age state pensions: farmers should be able to retain a small amount of land (<30 acres) without affecting entitlements. Read more
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New research has recommended that Ireland offer more early retirement incentives in the agriculture sector.
The research, undertaken by Maynooth University and Teagasc, examined the design of social security pension systems for farmers in five European countries to identify gaps in Ireland’s current system and suggest practical solutions.
In 2023, approximately 45% of those working in the agriculture, forestry and fishing sector had supplementary pension coverage, compared with 88% in the financial services sector.
Senior research economist in the rural economy and development programme at Teagasc Anne Kinsella said a significant portion of farmers have limited pension coverage, with many not planning to retire formally.
“Farmers face unique challenges regarding pension provision due to lower and variable incomes, the intergenerational nature of farm ownership and cultural attitudes towards retirement,” she said.
Pensions
The research explored the current state of pension coverage among Irish farmers in comparison with EU counterparts, examining various national approaches to farm retirement schemes and drawing lessons to enhance pension provisions in the agricultural sector.
To assess Ireland’s position relative to best practice, researchers evaluated pension systems for farmers in Austria, Finland, France, Germany and Poland.
These countries, all members of the European Network of Agricultural Social Protection Systems (ENASP), offer tailored social welfare schemes for farmers, serving as important benchmarks.
Assistant professor of accounting at Maynooth University Michael Hayden said each country has its own approach to farmer-specific social insurance.
“In contrast, Ireland operates a single social security system with a general distinction between self-employed and employed workers. Farmers are classified as self-employed, but with some limitations in the definition for social insurance purposes.”
Recommendations
Comparing other EU countries, the researchers found key lessons for improving pension provisions and facilitating generational renewal in agriculture:
Offer early retirement incentives: Finland’s model shows how financial support can ease the path to retirement.Boost private pension uptake: address affordability and trust barriers with financial planning support and education.Make PRSI contributions mandatory for farm workers: ensure young farmers and family members build up entitlements from the start.Register spouses and partners for PRSI: independent contribution records reduce reliance on means-tested supports.Provide transitional supports: help current farmers without adequate coverage close the gap.Review the means test requirements for non-contributory old age state pensions: farmers should be able to retain a small amount of land (<30 acres) without affecting entitlements. Read more
40,000 older farmers face farm payments wipeout
Lack of confidence in pension system among low-income farmers – new study
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