Mick Wallace (Wexford, Independent)
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54. To ask the Tánaiste and Minister for Social Protection if she will lower the starting age for the State pension to 65 years of age to bring it in line with the general age of retirement; and if she will make a statement on the matter. [1716/16]

Joan Burton (Dublin West, Labour)
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The Social Welfare and Pensions Act 2011 provided for increases in the State pension age. This process began in January 2014 with the abolition of the State pension (transition) available at 65, thereby currently standardising State pension age for all at 66 years. The changes introduced in 2011 were on foot of a Government commitment included in the National Recovery Plan published in 2010 and in the subsequent Memorandum of Understanding with the EU/ECB/IMF.

The purpose of these changes is to make the pension system sustainable in the context of increasing life expectancy. More people are living to pension age and living longer in retirement. In this context, the duration for which an average pension will be paid will continue to increase. The number of pensions is increasing by approximately 17,000 annually as a result of demographic change. This has significant implications for the future costs of State pension provision.

In 2013, the cost of the State pension (transition) was €137 million. It was estimated at the time that the net saving resulting from its abolition, when taking into account that many people would instead be in receipt of other payments at the lower rates applicable to those under 66, would amount to €33.5m in 2014 and approximately €65 million in 2015.

The Deputy should note that there is no general retirement age in the State, and the age at which employees retire is a matter for the contract of employment between them and their employers.

In terms of financial supports, social welfare benefits will continue to be available to the age of 66 for those who are contractually obliged to leave employment. Jobseekers whose benefit expires in their 65th year will continue to be paid benefit up until the age of 66. Where a jobseeker's benefit claim spans two benefit years, a new Governing Contribution Year requirement is not applied to the second benefit year of a claimant aged 65 (effectively this means that they may receive payment in both years based upon eligibility in the first year).

There are no plans to introduce legislation to change from the current position.