Dáil Éireann Debate, Thursday - 4 April 2019
27. Deputy John Brady asked the Minister for Employment Affairs and Social Protection her plans to set up a taskforce which would consider the appropriate level of pensionable age and make recommendations in view of the way in which pension age increases were agreed without consultation or debate; and if she will make a statement on the matter. [15641/19]
Amharc ar fhreagraOne of the key parameters in any pension system is setting the age at which a State pension can be drawn. To accommodate demographic ageing, all EU countries have undertaken, or have scheduled, reforms to their State pension age. In Ireland, legislation that progressively increases the Irish State pension age to 68 in 2028 has already been enacted. However, it is recognised that over the longer term, increasing life expectancy may continue to outpace the increase in pension age.
A policy which sees Ireland linking the State pension age with life expectancy is a measure for Member States advocated at EU level and has also been recommended by the OECD. This change will provide greater certainty and sufficient ‘lead in’ time to allow individuals plan, both personally and financially, for their retirement. It may also assist workers and employers in their considerations regarding any amendments to the terms of employment contracts.
Therefore, to put in place a fair, transparent and clearly understandable framework underpinning the State pension age, the Government committed in the "Roadmap for Pension Reform" published last year that there would be no further increases to the State Pension Age prior to 2035, other than those increases already provided for in 2021 and 2028.
Any change to the State pension age after 2035 will be directly linked to increases in life expectancy. This will begin with an assessment of life expectancy in 2022 to include a review of the proportionality between time spent in working life and retirement. At that point, informed by the review and assessment, a notice period of no less than 13 years will be given in respect of any planned changes to the State pension age before implementation occurs. Thereafter a similar assessment of life expectancy will take place every 5 years.
I hope this clarifies the matter for the Deputy.
