Legislation has recently been introduced which will increase the State pension age from 65 to 66 years, with effect from 1 January 2014. It will increase further to 67 years in 2021 and to 68 years in 2028. This effectively means that anyone currently 49 years or younger will reach State pension age three years later than they would under the current system. However, the Minister for Public Expenditure and Reform, Brendan Howlin has stated that workers will not be expected to work beyond age 70.
Currently, most occupational pension schemes allow employees to retire at age 65. The increase in State pension age could, therefore, be problematic for employers with a company pension scheme which is integrated with the State pension. Any such scheme should be reviewed before the changes become effective to ensure difficulties do not arise in implementing the revised State pension age.
Minister Howlin has said "mirroring legislation" would be brought in for public sector employees to ensure that the same retirement age applies to all employees in Ireland.