Eoghan Murphy (Dublin South East, Fine Gael)
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Question 116: To ask the Minister for Social Protection if, in respect of Government plans to increase the retirement age to 66 in 2014, there is a provision for those who are contractually obliged to retire at age 65 and will retire in 2014 and will therefore not be entitled to receive their contributory pensions until one year after they finish work. [18035/11]

Joan Burton (Dublin West, Labour)
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The effective date for standardisation of State pension age is 1 January 2014. Therefore, anyone who retires in 2014 will not receive State pension (transition). Should an individual not be able to remain in employment past the age of 65, he or she would be entitled to apply for another social welfare payment for the period between the cessation of employment and the State pension age of 66.

The background to the changes in State pension age is that the challenges facing the Irish pension system are significant. Life expectancy is increasing. The population share of those aged 65 and over is expected to more than double between now and 2051, from 11% to approximately 22-26% around 2050 – 2060. In contrast, the share of the working age population is projected to decline gradually from 68% to 58%.

There are currently six people of working age for every pensioner and this ratio is expected to decrease to approximately two to one by mid-century. Spending on public pensions, that is, social welfare pensions and public service occupational pensions, is projected to increase from approximately 5 1⁄2 % of GDP in 2008, to almost 15% in 2050.

Therefore, as provided for in the National Pensions Framework, State pension age will be increased gradually to 68 years. This will begin in 2014 with the standardisation of State pension age at 66. State pension age will be increased to 67 years in 2021 and to 68 in 2028. The legislative changes being included in the Social Welfare and Pensions Bill 2011 also fulfil one of the commitments in the EU/IMF Programme of Financial Support for Ireland.