George Lawlor (Wexford, Labour) | Oireachtas source

Abolishing the mandatory retirement age in Ireland presents numerous benefits that can positively impact individuals, organisations and society as a whole. The discussion we have today on this Bill must explore the various aspects of the issue, including the economic, social and psychological implications, as well as the challenges and considerations that come with one of the more significant policy changes since the introduction of the old age pension on New Year's Day in 1909.

The abolition of the mandatory retirement age is the key, giving people the choice to go at 65 or to continue to work. One of the most immediate benefits of abolishing the mandatory retirement age is the potential for increased labour force participation. As life expectancy rises and health improves, many individuals are capable of working, if they wish, beyond the traditional retirement age. This will help to alleviate labour shortages in various sectors, especially in industries facing demographic challenges.

Older workers often bring a wealth of experience and knowledge to their roles and, by allowing them to continue working, organisations can benefit from their expertise which, in turn, can lead to improved productivity. Experienced employees can also mentor younger colleagues, fostering a culture of knowledge sharing that can enhance overall workplace performance.

With more individuals remaining in the workplace for longer periods, there is potential for increased tax revenue and the associated supporting of public services and social welfare programmes, which are increasingly strained and will face even greater challenges as we face into the demographic time bomb as our population ages.

More workers contributing to the economy will lead to a more sustainable pension system. Abolishing the retirement age could lead to a more diverse workforce. Age diversity will foster innovation and creativity, as different perspectives and experiences come together to solve problems and deal with real-time situations. Organisations that embrace a multigenerational workforce are often more resilient and adaptable to change.

Many older individuals find purpose and fulfilment in their work. Allowing people to continue beyond the current 65, or 66 if they choose or wish to, will contribute to their overall well-being and quality of life. Work provides social interaction and a sense of identity so often lacking and diminishing in an ever-changing Ireland. This can be especially important for older adults who may otherwise face social isolation.

Abolishing the mandatory retirement age would help combat ageism in the workplace. By recognising the contribution of older workers, society would shift perceptions about ageing and work, fostering a more inclusive environment. This could also encourage younger generations to value the insights and experiences of their older colleagues. Removing the mandatory retirement age would empower individuals to make choices about their careers and retirement. People can decide when they are ready to retire, based on their own circumstances rather than a predetermined age. Such autonomy would lead to greater job satisfaction and personal fulfilment.

There are also psychological benefits. Continued employment can provide older individuals with a sense of purpose and accomplishment. Many derive satisfaction from their work, and being forced to retire can lead to feelings of loss and disengagement. Allowing individuals to continue working would help maintain their mental health and emotional well-being. Older workers often engage in lifelong learning, whether through formal education or on-the-job training. This commitment to personal professional development has been proven to enhance cognitive function and adaptability, benefiting both individuals and employers. By maintaining a diverse age range within the workforce, older employees can serve as role models for younger workers, demonstrating the value of experience, resilience and a strong work ethic. This could inspire younger generations to take their careers seriously and to value the contributions of all age groups.

While there are numerous benefits to abolishing the mandatory retirement age, there are also challenges and considerations that must be addressed. Employers may need to make adjustments to accommodate older workers, including flexible working arrangements and ergonomic improvements. Organisations that invest in creating a supportive work environment for older employees can reap the rewards of their experience.

The abolition of the mandatory retirement age may require a re-evaluation of pension schemes and retirement planning. We, as policymakers, and the financial institutions must work to ensure individuals are adequately prepared for retirement, regardless of when they choose to transition out of the workforce.

Organisations may need to proactively manage intergenerational dynamics to ensure a harmonious workplace, and training programmes that promote collaboration and understanding between different age groups may help mitigate potential conflicts and misunderstandings. While many older individuals are capable of working, it is essential to recognise that not everyone may be fit to do so. Employers must assess the health and well-being of older employees and provide appropriate support to ensure they can perform their roles effectively.

The Irish Congress of Trade Unions, ICTU, supports this Bill, preferably with an upper age limit of 70, to ensure alignment with the 2018 change that gives public servants and government employees the option of remaining in their job up to the age of 70, if they wish up to do so. However, ICTU also recognises that this Bill is good for private sector workers. It is important that workers have a right to keep their job. This would allow the majority of private sector workers who only want to continue working for an extra year between the ages of 65 and 66, beyond their companies' retirement age of 65, in order to qualify for the State pension at 66. This would eliminate the lacuna between the ages of 65 and 66 that causes great difficulty for some retirees.

Employers and IBEC support the increase to 66 years because there is a growing number of applications for a right to remain until 66. Employers do not want to have to deal with requests on a case-by-case basis. From soundings that have been taken, this Bill is hugely popular with the public, who see the legislation as a very positive move. Age Action also welcomes what it describes as long-overdue legislation to address the Pensions Commission's recommendation to enable private sector workers to remain employed, if they so wish, until they reach the minimum State pension age of 66. Age Action describes the frustration of many older people at being effectively forced into unemployment for a year prior to their being eligible for the State pension. Following its analysis, Age Action states that the approach adopted in the Bill is inconsistent with the policy goals set out in the roadmap for pensions reform 2018 to 2023, which stated:

The Government is determined to alter perceptions around retirement age and support a positive ageing environment, where older people are, to the greatest extent possible, encouraged and facilitated in working, if they wish to, beyond the 'normal' retirement age. Greater flexibility around working and retirement decisions will empower older people. It will allow them to optimise their own arrangements in a way that can improve their financial retirement readiness. It will enable our society to continue to benefit from the skills and experience of our older workers and it will help sustain the viability of the wider pension system.

More broadly, Age Action recommends an end to mandatory retirement on age grounds. It says that imposing an age at which all employees must retire, irrespective of their wishes and capacity, assumes that our ability to contribute to the workforce declines with age when, in fact, it may increase. Mandatory retirement reduces older people's opportunity to participate in society, limits autonomy, insults dignity and rejects diversity. According to Age Action, it is the normalisation of ageism in the workplace.

Abolishing the mandatory retirement age in Ireland holds significant promise for enhancing economic productivity, promoting social inclusion and improving the quality of life for older individuals. By recognising the value of experience and the contribution of older workers, society can foster a more inclusive and diverse workforce that benefits everyone.

However, it is essential to address the challenges and considerations that come with this policy change. By creating supportive workplace environments and ensuring adequate retirement planning, this country can embrace the potential of an ageing workforce while promoting a culture of respect and appreciation for all employees regardless of age. The decision to abolish the mandatory retirement age can be a transformative step towards a more inclusive and dynamic labour market, benefitting individuals, organisations and society as a whole.

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