Government will approach pensions age recommendation with an ‘open mind’

The Taoiseach said that the Government will approach the recommendation to retain the state pension at its current age of 66 with “an open mind”.

In a report published on Wednesday, the Social Protection Committee recommended maintaining the qualifying age for the state pension at 66, and to introduce legislation to ban mandatory retirement clauses in employee contracts.

It comes after the Government published a report which proposed raising the state pension age to 68 by 2039.

The Report of the Commission on Pensions put forward proposals in order to address the sustainability of the state pension system and the Social Insurance Fund (SIF).

The Pensions Commission proposed to increase the State Pension age by three months every year from 2028.

Publishing its report in response to the recommendation by the Pensions Commission, the Social Protection Committee proposed changes to the employers’ PRSI (Pay Related Social Insurance) contribution rates to be examined.

The Cabinet is set to assess the pensions plan at the end of March.

Labour TD Brendan Howlin described Wednesday’s report as “landmark recommendations”.

“They’re clearly at odds with the recommendations of the Pension Commission last October,” Mr Howlin added.

“It makes a very important point that it is unconvinced that the gradual increase in the pension age would have any meaningful impact on the fiscal position of the social insurance fund.

“It also calls for a ban on the use of mandatory retirement ages.

“One of the most important recommendations is that we should now build flexibility into our pension system to allow those with 40 years of contributions to access the state pensions at the age of 65.”

Micheal Martin said that the Government will approach the recommendations with “an open mind”.

“I think the commission did very detailed work,” he added.

“In the last 50 years in particular, survival rates in heart disease and survival rates from cancer and from stroke have been dramatically transformed.

“But it’s a good story, that we’re living longer. But it has implications for pensions, of how we sustain society with longer lives and greater access to health care and interventions.

“On the mandatory recommendations, we support that in terms of the banning of any mandatory clauses on retirement.

“People should be able to continue to work if that is their wish and choice. That makes sense, again, relative to the fact that we’re living longer.

“There will not be any easy choices here.”

Mr Howlin added: “This is a difficult decision.

“I think that the notion that an all-party committee would look at this and connect with actual solutions that are fiscally sound is something that should carry weight in the House.

“Covid has changed the way we look at work, our attitude of what location, flexibility, the nature of work itself.”