Bernard Allen (Cork North Central, Fine Gael)
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Question 75: To ask the Minister for Social Protection if, in view of the national pensions framework, his attention has been drawn to the fact that people face the prospect of spending up to three years in retirement without the State pension; and if he will make a statement on the matter. [27883/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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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. An 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.

In addition to the changes being made to State pensions, both employees and employers must be encouraged to change their attitudes to working longer. At the workplace level, employers must seek to retain older employees and create working conditions which will make working longer both attractive and feasible for the older worker. Where this is not possible and people leave paid employment before State pension age, they will be entitled to apply for another social welfare payment until they become eligible for a State pension, as is the current situation.