Joan Burton (Dublin West, Labour) | Oireachtas source

The Social Welfare and Pensions Act 2011 provided for increases in the State pension age. This process began in January 2014 with the abolition of entitlement to the State pension (transition) at 65 years of age, thereby standardising State pension age for all at 66 years. The changes introduced in 2011 were on foot of a Government commitment which arose out of the memorandum of understanding signed with the European Union, European Central Bank and International Monetary Fund in November 2010.

The purpose of these changes is to make the pension system sustainable in the context of increasing life expectancy. More people are living to pension age and living longer in retirement. In that context, the duration for which an average pension will be paid will continue to increase, albeit at a slower rate than if no such changes had been provided for in legislation.

The number of pensions is increasing by approximately 17,000 annually as a result of demographic change. This has significant implications for the future costs of State pension provision which is increasing by close to €1 billion every five years. In 2013, the cost of the State pension transition was €137 million. It was estimated at the time that the net saving resulting from its abolition, when taking into account that many people were in receipt of other payments at the lower rates applicable to those under 66, would amount to €33.5 million in 2014 and approximately €65 million in 2015.

All short-term social welfare schemes, including jobseeker's schemes, are payable to age 66. Jobseekers whose benefit expires in their 65th year will continue to be paid benefit up until the age of 66, when they can come into receipt of the State retirement pension. There are no plans to introduce legislation to change from the current position.

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