Incentive to continue working to 70 announced
People are to be given an increased State pension rate if they continue working to 70 years of age.
Major new changes announced this morning aim to reduce the pension burden on State coffers as people live longer.
The Pensions Commission recommended raising the retirement age to 68 from its current 66 but this was rejected by Cabinet.
Instead, people who work to 70 will receive €60 more per week in their State pension. The measure will come into place from January 2024.
Other measures agreed by Ministers today include a move to a "Total Contributions Approach" for calculation of individual pensions entitlements on a phased basis over 10 years starting in January 2024.
An enhanced State pension for long-term carers will also be introduced from January 2024.
“The measures agreed by Cabinet today represent the biggest ever structural reform of the Irish State Pension System.
“We know that people are living longer and healthier lives which is hugely positive. At the same time, everybody’s job and circumstances are different so we need to move away from a ‘one size fits all’ approach to the pension age.
“That is why from 2024, Ireland will move to a new ‘flexible pension age’ model, similar to the systems in place in a number of other EU countries."