Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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140. To ask the Minister for Public Expenditure and Reform if he has received advice from the Department of Finance or the Central Bank recommending an increase in the State pension age; and if he will publish any such correspondence. [53104/25]

Jack Chambers (Dublin West, Fianna Fail)
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This Department has not received advice from the Department of Finance or Central Bank recommending an increase in the State pension age.

This Department is aware of the potential impacts of projected demographic changes on pensions. To address such concerns, the previous Government established the Pensions Commission in November 2020. Its mandate was to examine the long-term sustainability of the State Pension system and the Social Insurance Fund in light of demographic trends.

The Commission’s report incorporated a comprehensive assessment of population, labour force, and expenditure projections. It outlined a series of recommendations aimed at ensuring the sustainability of the State pension system. These included measures such as a gradual increase in the State pension age and adjustments to social insurance contribution rates.

Building on the Commission’s recommendations, the Social Welfare (Miscellaneous Provisions) Act 2023 introduced significant structural reforms to the Irish State pension system. This legislation gave effect to pension provision for long-term carers, the introduction of pension deferral and the commencement of the 10-year transition to the Total Contributions Approach.

Rather than increasing the State pension age, the Government opted to enhance the sustainability of the Social Insurance Fund through phased increases in PRSI rates.

These incremental changes apply to all contributors: employees, employers, and the self-employed, and will total 0.7% between 2024 and 2028 with further increases to be considered, based on the most up-to-date data available from the next Actuarial Review of the Social Insurance Fund.