A suggestion in an actuaries' study that the retirement age might eventually be raised to 75 has been rejected by the Minister for Social and Family Affairs, Ms Coughlan. Chris Dooley, Industry and Employment Correspondent.
She said there were no plans to raise the current retirement age of 65, despite concerns about the ability of the State to fund pensions for an ageing population.
A report by the Society of Actuaries in Ireland says the most effective way to deal with the problem would be by increasing the retirement age.
The report, to be presented to the society's conference on ageing next month, says there are currently almost six people of working age for every person over 65.
By 2050, however, the ratio is set to fall to two people of working age for every person over the retirement age.Increasing the retirement age to 75, it says, would increase the "pensioner support ratio" in 2050 from two to 4.4.
The suggestion drew an angry response yesterday from the Irish Congress of Trade Unions (ICTU), which said there were other ways of increasing the number of workers in the economy. Concerns were also raised by Age Action Ireland and the National Council on Ageing and Older People.
Ms Coughlan said there were "no plans whatsoever" to increase the retirement age. She said she was "acutely conscious" of changing demographics which pointed to a larger older population in years to come.
A number of steps had been taken to address the issue.
The Government had increased pensions by 59 per cent since 1997, changed the tax code to remove 77,000 pensioners from the tax net, and established the national Pensions Reserve Fund to ensure continued payment of "decent pensions" in the future. It also had a programme, she said, to increase private/ occupational pensions coverage from 50 to 70 per cent of workers.
The introduction to the market of a new pensions product, PRSAs, was also helping to increase pensions cover.
In addition, the Minister said, €500,000 had been provided to the Pensions Board for a "major pensions awareness campaign", which would commence shortly.This aimed to increase awareness of pensions and pensions cover. The Government was committed to accumulating a considerable reserve fund to partially pay for future liabilities, she added.
"The public system therefore appears to be, in broad terms, financially sustainable despite projected major increases in future pensions expenditure."
Mr Fergus Whelan of the ICTU said the Society of Actuaries had made some very useful contributions to the debate on pensions, but suggesting the retirement age could be increased to 75 was "hare-brained". The idea was misconceived and would amount to a "terrible breach of trust between (the) Government and its citizens", he said.
Age Action Ireland, an independent network concerned with ageing and older people, said the traditional retirement age of 65 was "daft, outdated and a relic of different times".
However, "great care" should be exercised in extending that age. Retirement dates should, subject to certain parameters, be a matter of choice, it said.
The National Council on Ageing and Older People said those who wished to work after 65 should be enabled to do so.
But raising the age at which State pensions were paid would increase the likelihood of even greater income deprivation among older people, especially those who were most vulnerable.
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