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Questions Raised By TDs And Senators Over The Potential Rise In The Pension Age

An Oireachtas committee has said it rejects the Pensions Commission recommendation that the retireme...
Ben Finnegan
Ben Finnegan

12:30 PM - 2 Feb 2022



Questions Raised By TDs And Se...

News

Questions Raised By TDs And Senators Over The Potential Rise In The Pension Age

Ben Finnegan
Ben Finnegan

12:30 PM - 2 Feb 2022



An Oireachtas committee has said it rejects the Pensions Commission recommendation that the retirement age increase beyond 66.

It also wants mandatory retirement clauses in contracts to be banned.

The Pensions Commission found the current State pension system isn't sustainable, and recommended that the pension age - which is now 66 - should rise by three months every year from 2028.

That means in 2031 the pension age would be 67. After that it's recommendation is that it would rise by three months every two years from 2033.

That means under the Pension Commission's plan the age would be set at 68 from 2039.

The Social Protection Minister has said she'll consider a committee report which recommends against increasing the State pension age.

Chair of the Social Protection Committee Denis Naughten has denied the recommendation not to increase the pension age is politically motivated:

"The Commission presented the Government with four packages - they did go for preference with the one that increases the pension age.

"We're going for one that does not increase the pension age, but the recommendation comes from the Commission itself."

The Irish Association of Pension Funds says legislation and attitudes need to change, to create a more flexible retirement age.

Chief Executive of the IAPF Jerry Moriarty says there needs to be a mindset change:

"Lots of people have paid PRSI from a quite a young age from the age of 17 or 18 - people who would've gone straight into the workforce after school.

"They had a reasonable expectation that they would get a pension at 65, and now it would be a number of years later.

"I think in some ways we need to become more flexible in our thinking about retirement.

"We've kind of pitched everything at an age or a day when you've been working - and now you don't."



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Denis Naughten Irish Association Of Pension Funds Jerry Moriarty Pension Pension Commission Retirement

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