Dáil Éireann Debate, Wednesday - 18 September 2013
591. Deputy Timmy Dooley asked the Minister for Social Protection the provisions being put in place for persons who reach the age of 65 years in 2014 and are not eligible for the State pension until they reach the age of 66 years; and if she will make a statement on the matter. [37260/13]
View answerIncreasing State pension age and the abolition of the State pension (transition) are steps that have been taken to ensure the sustainability of pensions into the future. The decision to reform State pension was taken in the context of changing demographics and the fact that people are living longer and healthier lives.
The Social Welfare and Pensions Act, 2011 provides that State pension age will be increased gradually to 68 years. This will begin in 2014 with the abolition of the State pension (transition) thereby standardising State pension age for all at 66 years. The State pension age will be further increased to 67 years in 2021 and to 68 years in 2028.
It should be noted that until the 1970s, the standard age for receipt of State pension was 70 years of age. This applied at a time when longevity was much lower and working patterns were more likely to be physically demanding. State pension (transition) was introduced in 1970 when it was known as the retirement pension and was designed to bridge the gap between the standard social welfare pension age, which at that time was 70 years of age, and retirement age. Overtime, the age for State pension contributory was reduced to 66 years.
In December 2012 there were approximately 14,400 State pension (transition) claims in payment. The Deputy may wish to note that a significant number of people coming on to State pension transition in 2012 did not come from work as significant numbers were already on other social welfare schemes well in advance of State pension transition age. For example, 12.5 per cent came from work with over 50% coming from other social welfare schemes such as illness benefit, jobseekers benefit and assistance, invalidity and carers.
In terms of social welfare supports available to those at age 65 who are unable to remain in the workforce, the main social welfare payment available to those who leave employment before pension age is jobseeker’s benefit. Persons who qualify for a jobseeker’s benefit who are aged between 65 and 66 years are generally entitled to receive payment up to the date on which they reach pensionable age (66 years).
The recently published OECD report on the Review of the Irish Pension System confirms that reforms are necessary if we are to continue to put pension provision on a sustainable footing given the changes in demographics, the deficit in the Social Insurance Fund, and the difficult fiscal situation.
