Linda Nelson Murray (Fine Gael)

I thank the Minister of State for being here today. I heard a great quote once, which is: "The trouble with retirement is that you never get a day off." That sounds kind of wonderful - being busy in retirement and healthy to enjoy it. However, I would like it on my own terms, and this legislation we are debating goes a long way towards that. I would not like to be told I have to retire earlier than I want to or before the State pension age, so I very much welcome this today.

As was mentioned, the background to this is that the Pensions Commission was established on foot of the 2020 programme for Government commitment to examine sustainability and eligibility issues with State pensions and the Social Insurance Fund. In its terms of reference, the commission was also asked to consider the issue of retirement ages in private employment contracts that are set out below the State pension age. Currently, there is no general retirement age for employees in Irish legislation. Under Irish and EU employment equality legislation, an employer is currently permitted to set a retirement age but only in circumstances where it can be "objectively [and reasonably] justified by a legitimate aim and the means of achieving that aim are appropriate and necessary."

In September 2022, in response to the Pensions Commission recommendations and implementation plan, Government committed to a range of pension reforms. The Government also committed to introduce legislation which would allow, but not compel, an employee to stay in employment until the State pension age. This legislation is really important and it reaffirms Government's long-standing policy to encourage and support longer and fuller working lives where older people are facilitated in continuing in employment if they wish to do so until the age that they can first access the State pension.

Some people dread retirement. My mam was one of those people. If she was not running up and down to the showrooms of our furniture factory in Navan, she was lost. She liked a bit of bingo and, of course, her family, but work and that passion for meeting people and selling them furniture was everything. Mam started work at the age of 12 as a seamstress and work was all she knew. She adored it. Getting her to go on holidays was even difficult, which is why she did not retire to the age of 75. At that stage, she was just about ready to retire because she was just getting a little bit tired. We are a different generation now. Our life expectancy is 82.5 years. In 1975, when I was born, our life expectancy was 71. As mentioned, life expectancy in Ireland is the fifth highest in the EU. Our health service is one that continues to deliver better results for the people of Ireland and in some cases, it is among the best in Europe. Life outcomes for a number of conditions including cancer, circulatory system diseases and heart diseases have fallen and mortality rates for respiratory system diseases are, thankfully, also falling with only 15% of us now smoking. It is also important to note that the proportion of older workers and, in particular, workers who want to continue in employment beyond what would have been regarded as the traditional age of 65, is forecast to grow significantly in the future.

This Bill essentially enacts a consent-based approach to retirement. It provides employees with a brand-new right to opt out of their contract, say, if it falls below the State pension age, which is currently 66. This would allow the income bridge to be gapped for employees who would otherwise face financial difficulties if forced to retire. Financially, yes, this is an issue, but there are also a huge number of people who do not want to retire because of their mental well-being. It is just what they want to do. The just do not want to stop working. Some people are afraid to stop because of having worked all their lives and what just stopping could do to them mentally.

In this Bill, employees can formally notify their employer in writing if they do not consent to retire at the contractual age if it is below the State pension age. The Bill also provides employees with a right to change their minds, which, again, I agree with. Therefore, if they decide that they do not want to retire and then go back to their employer and say they have changed their mind, that is also okay.

Employers will now obviously need to consider the impact of this Bill, although, as an employer myself, I would hope this will be welcomely received from all people in the private sector. They will need to consider workforce planning and succession strategies and adapt them accordingly. Employers will be able to retain experienced employees, which is critical, and draw on their expertise for longer periods or even maybe use them in a different vein in their organisation.

The publication of this Bill together with the wider package of pension reforms being rolled out by Government is a significant step in improving the predictability of retirement income for employees and helping to protect workers when they are approaching retirement. Workers must still retire at 65 as per the contract if they so wish, but there is a cohort of people, as I have mentioned, who will continue to keep on working. In light of this happening today, I reached out to the nursing home sector, which, as we know, can really struggle getting staff. Those working in the sector said that this Bill appears to be positive and will support the sector with current labour shortages, allowing workers who are often more experienced to continue in hard-to-recruit positions.It will assist in the retention of senior, skilled workers in the nursing home sector. It will reduce recruitment costs, particularly when local workers cannot be sourced. Nursing homes are required to source candidates from abroad, which is costly. It will improve the continuity of care for residents of nursing homes and that is all we want for our loved ones.

That is only one organisation and I imagine there are plenty more. I expect there will be cross-party consensus on this. I am glad the Minister of State has said there possibly is. I am glad there was cross-party support in the Dáil as well. We need to enhance the rights of older people and this is one step towards that. Age is not lost youth but a new stage of opportunity and strength.