Mr. Patrick Meany:

I thank the Chairman for giving me an opportunity to speak today. I also thank Deputy Ferris for introducing this Bill.

People in Ireland today are living longer. Life expectancy has been revised upwards and people who have reached retirement age should have the option of remaining in employment.Life expectancy at the average effective retirement age can be as high as 18 to 20 years, about a third longer than it was 30 years ago. It is projected to increase further, so the retirement period will lengthen unless retirement itself is delayed. As we can look forward to living longer, we need to rethink what retirement looks like. As the population dynamics change, there are many potential advantages for all of us, including a stronger economy, higher living standards, less pensioner poverty, reduced spending on benefits, and improved national well-being and inter-generational cohesion.

The obvious solution is to embrace later-life working, helping to realise the potential of older workers who have so much experience and talent to offer.

This is not about being forced to work on but enabling and encouraging those who want a fuller working life. Older workers can play a vital role in future growth both for individual businesses and the wider economy overall. Employers need to adopt age-friendly policies such as flexible working, phased retirement, family care leave and even gap breaks. This can facilitate a new type of retirement in which people cut down rather than suddenly stop working, where health and well-being policies take account of older workers’ needs and where employers enable staff to combine work with caring responsibilities. Managers with the right skills are crucial to supporting older workers successfully.

Working in retirement offers many benefits. For example, not only can working delay the onset of age related diseases such as dementia, but keeping mentally and physical active helps one feel younger for longer. It is generally accepted by most people on reaching retirement age that they would prefer to continue working beyond retirement. Working also keeps one socially active, preventing isolation and providing a sense of purpose. Senior citizens who stay in the workforce are much more likely to retain their cognitive ability. Many senior citizens become isolated after retirement which can have widespread psychological consequences for anyone. Senior citizens who stay in the workforce are much more likely to stay up to date with technology, since technological changes have an effect on each and every workforce.

By simply working a few extra years, one can put oneself into a much better financial situation. Whatever a person’s circumstances, working into the second half of one’s 60s or beyond offers the prospect of a happier and more financially secure retirement when one finally does retire. The financial benefit from working is obvious. One keeps earning income. This regular income allows one to continue to pay for one’s life expenses without needing to turn to one’s retirement benefits for necessities. Workers generally have become healthier and more educated while jobs have become less strenuous. This means more people are willing and able to work longer. The definition of retirement has changed. Rather than retire altogether, many older workers are phasing out of one career and into another. On reaching 65 years of age, an employee should have the option to continue working. We must ensure older people’s skills do not go to waste. It is generally accepted by most that on reaching retirement age, they would prefer to continue working beyond retirement.