News that young people will have to pay an average of €2,500 a year in taxes to keep the state pension age at 66 has been described as a “scandal and disgrace” by Newstalk’s Ciara Kelly.
As life expectancy increases, many countries across the world have begun to gradually increase the age at which people receive their state pension.
Fine Gael previously mooted increasing the age to 68 but the proposal was junked after the party went into Government with Fianna Fáil in 2020.
The Irish Fiscal Advisory Council estimates that for this to be sustainable, someone in their 20s, 30s or 40s earning €50,000 will need to pay €2,500 a year extra in tax, while someone on €35,000 will have to pay €2,000.
For Ciara Kelly, it is an example of intergenerational unfairness:
“I have kids that fall into that bracket of the young people who will be paying €2,500,” she said on Newstalk Breakfast.
“Not just €2,500 as a lump sum but €2,500 per year they will be paying to keep older people’s pension age at 66.
“And let’s be honest that’s because those same older people haven’t put enough aside themselves to do it.
'It's grossly unfair that we are saddling young people with paying for the mistakes of the older generation.' Ciara Kelly on @NTBreakfast this morning discussing the news that young workers may face paying an extra €2,500 a year so older people can retire at 66. pic.twitter.com/DB3CppD1Dy
— NewstalkFM (@NewstalkFM) August 31, 2022
“And this is the key thing, these young people are paying this additional millstone of money, having zero chance themselves of being able to retire at 66.
“It’ll be over for them at that stage and these are the people who are already paying for the debt from the Celtic Tiger crash.
“They already have a very limited chance compared to that generation that they’re paying for now of owning a home.
“And it strikes me as grossly unfair that we are saddling young people with paying for the mistakes of older generations and these are the same young people, by the way, who will never accumulate… the wealth of that generation that they’re paying for.
“I don’t think it’s fair, I actually think it’s a scandal and I think it’s a disgrace and I think people should be up in arms.
“That generation - if you’re in your 20s or your 30s or your 40s - you should fight this!”
Main image: Ciara Kelly.