The pre-retirement allowance is a means-tested payment which allows a person aged 55 or over to opt to retire from the labour force and receive a weekly allowance. To qualify for the payment, the person concerned must be in receipt of a long-term unemployment payment, or be no longer entitled to one-parent family payment or carer's allowance.
It is important to recognise at the outset that the scheme is entirely optional and there is no obligation therefore on anyone to avail of PRETA. Unemployed people over the age of 55 who wish to continue to seek work are allowed to remain on unemployment assistance. Furthermore, there is no restriction on a person in receipt of PRETA, coming out of retirement and returning to employment if they so wish.