Long-term Carers to be Provided with Pension for the First Time
The State Pension age will remain at 66, and those who work until the age of 70 will benefit from an extra €62 a week in their State pension.
Minister for Social Protection, Heather Humphreys TD, has announced a series of landmark reforms to the State Pension system in Ireland. The measures, which were approved by Cabinet this morning, are in response to the recommendations from the Commission on Pensions.
The measures will come into effect in January 2024.
It means those who leave work at 66 will get the current weekly pension rate of €253, rising to €266 for those who retire at 67, €281 at 68, and €297 weekly if you retire at the age of 69.
The highest weekly rate of €315 would apply to those who stay in the workforce until the age of 70.
For the first time, long-term carers will receive a State Pension.
- There will be enhanced State Pension provision for long-term carers to be introduced from January 2024. This will mean, for the first time, people who have to give up work over a long duration to look after a loved one will have their time spent caring recognized in the pension system.
- The Department of Enterprise, Trade and Employment will introduce measures that allow, but do not compel, an employee to stay in employment until the State Pension age;
- Workers will be provided with access to a PRSI contribution statement service each year in a manner that enables them to understand their entitlements;
- The long-term sustainability of the State Pension system will be addressed through gradual, incremental increases in social insurance rates over time.
- The level and rate of increase in social insurance rates will be determined on a structured basis every 5 years informed by the outcome of a statutory actuarial review.
- A commitment to explore the design of a scheme that would modify the current Benefit Payment for 65-year-olds to provide a benefit payment for people who, following a long working life, 40 years or more, are not in a position to remain working in their early 60s;