Ollie Crowe (Fianna Fail)

I welcome the Minister of State to the Chamber this afternoon. I also welcome this legislation, which, as she outlined, will allow workers whose contract has a retirement age of 65 or under to work to the State pension age of 66, if they so wish. It will allow those who wish to bridge the income gap experienced by persons who are required to retire at an age lower than the age at which they can access the State pension to do so. Workers may still retire at 65 as per their contract if they so wish, but there are many people who are happy to continue to work for an extra year and this change in employment law will allow for this. A number of people in Galway city and beyond have raised this issue with me in recent years, so I am happy to see that this Bill will address it.

As the Minister of State has said, this legislation will implement a key commitment included in the Government’s response to the Pensions Commission recommendations and implementation plan. What people want in the pensions area is certainty and clarity. They want to know what they will be entitled to and at what age it will be delivered. As the Minister of State noted, this is part of a broader package of pension reforms being rolled out by the Government. The provisions in this Bill are an important step in improving the predictability of retirement income for employees and helping to protect workers when they are approaching retirement. These reforms will enhance the clarity and certainty people are seeking when it comes to pensions.

As part of those wider reforms, we should examine mandatory retirement ages in general. People are healthier than ever nowadays, with Ireland having a life expectancy of 82 years, one of the highest in Europe. Many are eager to continue working but are not able to do so due to a mandatory age limit. We are also much more aware now of the negative impact thatforced retirement can have on the mental health of those who wish to continue working. Wherever possible, we should allow people to have choice in this area and to make decisions based on their own capacity and their own personal circumstances. I appreciate that this is outside the scope of today’s Bill but with the Minister of State in the House, I wanted to take the opportunity to raise this issue.

Thankfully, we are living in a period of full employment. Indeed, there are employers across the country who have positions they cannot fill. This legislation is both welcome and needed. It reflects the changing demographics of the country, with people living longer lives than ever before. It provides people with the opportunity to continue to work and contribute to our strong economy if they so wish. It supports the long-standing policy to encourage and support longer and fuller working lives, where older people are facilitated in continuing in employment, if they so wish, until the age at which they can first access the State pension. I am happy to support the Bill and expect it will receive broad support in this House as it did in Dáil Éireann.