Regina Doherty (Meath East, Fine Gael) | Oireachtas source

The Social Welfare and Pensions Act 2011 provided that the State pension age will be increased gradually over time. This began in 2014 with the abolition of the State pension (transition), which was available to people aged 65 who satisfied qualifying conditions. This measure standardised the State pension age for all of us to 66 years and this will increase to 67 in 2021 and to 68 in 2028. I will allow the rest of the official reply be taken as read in the Dáil record.

No changes are planned in the immediate future - no changes in this year's budget and no changes in next year's budget. The reason for that is twofold. First, I want to ensure that anybody who wants to work over the ages of 50 or 55 is enabled to do so. More importantly, for those people who are not working and who are on the rural social schemes, CE schemes or Tús that they are acknowledged and valued for the contribution they are making. No man or woman should be on the live register between the ages of 65 and 66, or 67 and 68, going forward, who does not want to be.

Additional information not given on the floor of the House.

In most cases, it is hoped that workers will continue to work up to the new State pension age. Where this is not possible, there are specific measures which apply to someone claiming jobseeker’s benefit from a date after their 65th birthday. Where qualified, these recipients may continue to be eligible for that payment until reaching pension age.

We are well aware that people are living for much longer. Life expectancy at birth has increased significantly over the years and is now at 78.4 years for men 82.8 years for women. This is very positive. As a result of this demographic change, the number of State pension recipients is increasing year on year. This has significant implications for the future costs of State pension provision, which are currently increasing by close to €1 billion every five years. The purpose of changes to the State pension age is to make the pension system more sustainable in the context of increasing life expectancy. This sustainability is vital if the current workers, who fund State pension payments through their PRSI, are to receive a pension themselves when they reach retirement age.

The Deputies should note that there is no legally mandated retirement age in the State and the age at which employees retire is a matter for the contract of employment between them and their employers. While such a contract may have been entered into with a retirement date of 65, in the context of the previous State pension arrangements there is no legal impediment to the employer and employee agreeing to increase the duration of employment for one or more years, if both parties wish to do so.

See this speech in context