Heather Humphreys (Cavan-Monaghan, Fine Gael)
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In September 2022, I announced a series of landmark reforms to the State Pension system. The measures are in response to the Pensions Commission’s recommendations and represent the biggest ever structural reform of the Irish State Pension system.

One of the measures I announced is the introduction of flexibility to the State Pension (Contributory) from 1 January 2024. This will allow a person to defer access to their State Pension (Contributory) up to the age of 70 and receive an actuarially based increase in their weekly payment rate.

The rates will be set out in the Budget annually and based on actuarial factors, which will be reviewed every five years in line with the actuarial review of the Social Insurance Fund.

Based on the January 2024 rate of State Pension (contributory) of €277.30, the proposed maximum rates for each year of deferral in 2024 are:

• €290.30 at age 67
• €304.80 at age 68
• €320.30 at age 69 and
• €337.20 at age 70.

As the measure is being introduced for those who turn 66 from January 2024, the first people to be eligible for a higher rate will be those who turn 67 in January 2025. Even if the base rate of €277.30 changes in the next budget, these rates provide an indication of the scale of the actuarial increases that will apply.

As the State Pension age remains at 66 years, a person can still draw their State Pension (Contributory) at State Pension age.

As the Deputy is aware, a Bill to give effect to this and other State pension reforms is currently before the Oireachtas, and I expect the legislation to be enacted by the end of the year.

I hope this clarifies the matter for the Deputy.