Dáil Éireann Debate, Wednesday - 5 October 2022
211. Deputy Neale Richmond asked the Minister for Social Protection if a person who chooses to stay in work upon reaching the age of 66 years can access their State pension under her new pension plan; and if she will make a statement on the matter. [48716/22]
Amharc ar fhreagraI announced a series of landmark reforms to the State Pension system on 20th September 2022. The measures, which were approved by Government, are in response to the recommendations from the Commission on Pensions. The set of measures represent the biggest ever structural reform of the Irish State Pension system.
Rather than fixating on the idea of a single State Pension age, a flexible pension system will be introduced in Ireland. Under this new system, which will take effect from January 2024, people will still be able to retire at 66 and draw-down their pension in exactly the same way as they can today. In addition, there will be new flexibility so that people can choose to defer their pension, work longer and receive a higher pension payment.
People can draw down their State Pension at age 66 and continue in paid employment if that is what they want to do. The current position is that a person aged 66 years of age and over who works in paid employment can receive a contributory State Pension payment, and there is no means testing or retirement condition for this payment. Furthermore, a person in receipt of the State Pension (Non-Contributory) can also work in paid employment subject to means testing rules. The State Pension reforms announced in September 2022 will not change that position.
The flexible State Pension system is about providing people with choice. People will decide for themselves what best suits their needs and circumstances. For example, in the case of a person who reaches age 66 and does not have sufficient contributions to qualify for a full pension, they will now have the option to work for longer in order to obtain a higher pension payment. A person will also have the option to continue working between age 66 and 70 and receive an actuarially based increase in their weekly payment rate.
My officials will work to implement the reforms, including the drafting of legislation and development of administrative and IT systems as necessary.
I hope this clarifies the matter for the Deputy.
