Dáil Éireann Debate, Wednesday - 13 January 2016
55. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection if she will change the retirement age of a person (details supplied) in Dublin 9; and if she will make a statement on the matter. [46542/15]
View answerThe Social Welfare and Pensions Act 2011 provided that State pension age will be increased gradually to 68 years. This began in January 2014 with the abolition of the State pension (transition) available at 65, thereby standardising State pension age for all at 66 years. State pension age will increase further to 67 in 2021 and 68 in 2028. 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 this demographic change. This has significant implications for the future costs of State pension provision which are currently increasing by close to €1 billion every 5 years.
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 were instead in receipt of other payments at the lower rates applicable to those under 66, would amount to €33.5m in 2014 and would amount to approximately €65 million in 2015.
There is no legal 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.
There are no plans to introduce legislation to change from the current position.
