Brendan Howlin (Wexford, Labour) | Oireachtas source

The economy has stabilised and the public finances are in balance, thanks to the sacrifices made by the people of this country over the past ten years. Because of the positive role of immigration, we retain a relatively young population compared with most of Europe. We have to plan for the growing number of older citizens and for the gradual increase in the average age of the population. We do not have to have what at present is the highest retirement age in Europe. Right now, people are not entitled to the State pension until the age of 66. This is due to rise to 67 in 2021. That would put Ireland into a small group of countries with the highest retirement age in Europe. We are living longer. In future, people who go to third level education will likely only begin their careers in their mid-20 or later and probably will work beyond the age of 65 but we are not there yet. Many people who are now approaching retirement came into the labour market in their teens and have already done up to 50 years of work and paid up to 50 years of tax and social insurance contributions.

They have made their contribution to society and it is unjust to force them to wait another two years to receive their pensions. Many are tied into contracts that require them to retire at the age of 65 years. Some may choose to work longer if they can, but many of them do not have that option. For someone who may have been working in the same job for decades to suddenly seek a new job at the age of 65 years is not easy. Some employers may be reluctant to take on people in their 60s. Those in this cohort end up seeking jobseeker's benefit. The Government has created an exception to the rules for jobseeker's benefit to allow the payment to continue until a person retires, but there is no need to require thousands of older people to enter a pre-retirement period to wait for their pensions. The Social Insurance Fund is projected to have a surplus of €3.8 billion by the end of the year. We now have funds to pause or slow down the increase in the retirement age and give society time to adjust in order that those entering the labour force later can project themselves working later. We have the opportunity not to proceed in the timeframe forced on us when we were in the troika programme. In my judgment we can afford to allow 66 year olds to continue to access the full State pension, for which they have more than paid. Will the Taoiseach reflect, as I have done, and agree that it is time to pause the current plan to increase the waiting time again in 2021? Should we not give society and the economy more time to adjust before raising the retirement age beyond the current age of 66 years?

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