Joe O'Brien (Dublin Fingal, Green Party) | Oireachtas source

Qualification for the contributory State pension is based on a number of criteria, including a minimum of 520 qualifying social insurance contributions having been paid. As the actuarial value of the State pension is currently estimated at approximately €380,000, it is reasonable to require people claiming a contributory pension to have made at least ten years of paid contributions over the term of their working life before qualifying for a payment. When a person reaches State pension age and does not satisfy the conditions to qualify for the contributory State pension or qualifies for less than the maximum rate, he or she may instead qualify for another payment from the Department such as the non-contributory State pension or an increase for a qualified adult if his or her spouse has a contributory pension. If the spouse or civil partner is deceased, a widow's, widower's or civil partner's contributory pension may be payable.

A key reform of the State pension system, which the Minister announced last September, is the introduction of a flexible pension system in Ireland. Under this new system, people can still retire at 66 and draw down their pensions in the same way as they can today. In addition, those reaching age 66 from January 2024 may choose to defer their pensions, work longer, build contributions and receive a higher pension payment if they wish. People will decide what best suits their needs and circumstances. For example, in the case of a person who reaches age 66 and has fewer than the 520 paid contributions required to qualify for the contributory State pension, he or she may opt to continue working and paying PRSI between the ages of 66 and 70 to build up contributions. I hope this clarifies the matter for the Deputy.

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