Written answers

Tuesday, 18 May 2010

Department of Social and Family Affairs

Pension Provisions

9:00 am

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context

Question 393: To ask the Minister for Social Protection the position regarding a matter (details supplied). [19976/10]

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
Link to this: Individually | In context

Question 418: To ask the Minister for Social Protection his plans to raise the pension retirement age in 2014; his views on whether this provides enough lead-in time for persons; and if he will make a statement on the matter. [20497/10]

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 421: To ask the Minister for Social Protection if his attention has been drawn to confusion among persons in their early 60s on the way the proposed changes to pension age will affect them, the confusing way in which the proposal is set out in the National Pensions Framework document and the conflicting reports in the media about persons aged 61 years and 62 years of age; and the various cut-off points for pension age increases based on date of birth. [20749/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I propose to take Question Nos. 393, 418 and 421 together.

The challenges facing the Irish pension system are significant. In particular, the task of financing increasing pension spending will fall to a diminishing share of the population. There are currently six workers for every pensioner and this ratio is expected to decrease to less than two to one by 2050.

Increasing state pension age is one of the ways in which we can sustain the pensions system and also maintain the value of the State Pension at 35% of average earnings. People are living longer and healthier lives with average life expectancy set to rise even further in the future, up to 89 years for women and 83 for men. People will still, therefore, be spending at least the same amount of time in retirement as they are today, even with a later State pension age.

Therefore, as announced as part of the National Pensions Framework, the State pension age will be increased gradually to 68 years. This will begin in 2014 with the removal of the State pension (transition), thereby standardising State pension age at 66. This means that the last group of people to receive the State pension (transition) will be those who reach 65 years of age in 2013. State pension age will be increased to 67 years in 2021 and to 68 in 2028.

The details and timeframes for these changes are set out in the National Pensions Framework, which was published on 3 March 2010. The Government's plan for future pension reform in Ireland encompasses all aspects of pensions, from social welfare to private occupational pensions and public sector pension reform. The aim of the framework is to deliver security, equity, choice and clarity for the individual, the employer and the State. It also aims to increase pension coverage, particularly among low to middle income groups and to ensure that state support for pensions is equitable and sustainable.

Implementation group chaired by my Department has been established to develop the legislative, regulatory and administrative infrastructure required to put the necessary reforms into operation.

Comments

No comments

Log in or join to post a public comment.