Dáil Éireann Debate, Tuesday - 20 February 2024
362. Deputy Michael Collins asked the Minister for Social Protection if persons over the age of 70 years who are capable and willing to work could be eligible for additional the State pension benefits; and if she will make a statement on the matter. [8087/24]
View answerIn September 2022, I announced a series of landmark reforms to the State Pension system in response to the recommendations from the Pensions Commission. This set of measures represents the biggest ever structural reform of the Irish State Pension system.
One of the key measures under these reforms, which came into operation from the 1st January 2024 is the introduction of a flexible pension system in Ireland.
Under this system, there is now flexibility for those reaching State Pension age to defer access to their State Pension (Contributory) at any age up to the age of 70 and receive an actuarially adjusted higher rate of payment. A person can use the period between 66 and 70 years of age to build up additional entitlements and, if a person has less than 10 years PRSI reckonable paid contributions, they may be able to use this period to establish entitlement. Those who defer claiming their State Pension (Contributory) and continue to work, will have access to certain short-term contingency payments during the period of deferral.
The Pensions Commission considered the duration for deferral and ultimately recommended the age of 70 as the cut off. Internationally speaking, the length of deferral in the EU ranges from three years to indefinitely. The age of 70 also aligns with the public service, whereby, under law, a person can now work up to the age of 70.
Any proposal to extend the age limit beyond 70 may be better informed following a period to consider how the new deferral system operates in practice.
