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Dáil
‹ Ceisteanna — Questions. Oral Answers. - Employers' PRSI Contributions,

Old age pension eligibility age

Summary

Bell asked about lowering the old age pension age from 66 to 65; Woods said the Social Welfare Commission found the change unwarranted given its estimated annual cost.

asked the Minister for Social Welfare the plans if any, he has to reduce the old age pension age from 66 to 65 years.

Comment on this

Social welfare retirement pension is payable at age 65 and old age pension, contributory and non-contributory is payable at age 66. The reduction generally of pension age from 66 to 65 was one of the issues examined by the Commission on Social Welfare in their report. The commission did not consider that the reduction in the qualifying age for old age pension was warranted at present in view of the associated cost.

The net cost of a reduction in pension age to 65 is estimated to be of the order of £34 million in a full year at 1987 rates of payment. This estimate takes account of additional expenditure on old age pensions and on fringe benefits-in-kind — free travel etc., loss of PRSI contribution revenue and consequential savings on short term social welfare payments. The question of a general reduction in pension age to 65 years is being addressed by the National Pensions Board who will be reporting to me on the question of a national pension system in due course.

Comment on this