Proposals to increase compulsory retirement age
The Independent Alliance has welcomed proposals to increase the compulsory retirement age in the public sector to 70 years.
During its pre-budget negotiations with Finance Minister, Paschal Donohoe, the Independent Alliance looked for changes to the compulsory retirement age and said the public sector would be the ideal place to start.
The Independent Alliance stressed to Minister Donohoe that an anomaly currently exists whereby many people are forced to retire at 65, yet are not eligible to receive their State Pension until they are 66 — forcing many on to social welfare payments for a year.
‘We are very pleased that Minister Donohoe listened to our concerns and has acted on them. While we appreciate that many people will want to retire once they reach the age of 65, it is right a proper that they are given the option to stay in the workforce longer if they choose.’
‘In 2021 , the qualifying age for the State Pension will rise to 67 and in 2028, a person will not be entitled to receive their State Pension until they reach the age of 68.
‘As people will be given the option to work longer, this means that they will continue to contribute to the Exchequer. It is a very welcome development and one that we are proud to have played a leading role in.