Paying those who retire later a bigger pension is a “positive step”, a HR specialist has said.
In the last Dáil, Fine Gael plans to increase the pension age to 68 encountered fierce resistance from opposition parties - including Fianna Fáil.
The current Government has compromised on the issue and decided to reward people who work beyond the age of 66.
Those who retire at 66 will be entitled to a pension of €253 a week, rising to €266 at 67, €281 at 68 and €289 at 69. Those who continue working until 70 will receive a pension of €315.
PRSI contributions are expected to rise as well.
Positives and pitfalls
“I welcome it [the proposal] and I see pitfalls,” HR expert Louisa Meehan told The Pat Kenny Show.
“I think it’s a positive step in the right direction and… there are some people who feel capable of working longer, who want to work longer, who are enjoying what they’re doing, who are adding benefit to their organisation and that’s a real positive thing.
“But that doesn’t suit everybody and there are situations for organisations where maybe somebody has reached the end of their journey in that organisation and they need to move on.
“Or they are no longer capable of working the way they previously were but how do you navigate that conversation?”
She also said it would have an impact on younger people as they try and climb the career ladder:
“If we have people staying on until 70, that’s an additional five years.
“That reduces promotional opportunities for people coming from behind them. So that has a knock on impact throughout the life cycle for all of us in the workplace.
“So it is positive but it does have some areas that would be quite concerning.”
'Everyone likes money'
However, at the National Ploughing Championships, opinions were more mixed:
“I think it’s terrible really,” one woman told Newstalk.
“People shouldn’t have to work to 70 just to get an extra €60 in their pension. People have worked long enough.”
“I’d love it!” a man enthused.
“I think it’d be a great thing to do… I’d like to do that [work to 70]... Everyone likes money.”
Another woman said that she liked that the scheme was voluntary:
“There’s a lot of people who are 66 who would like to retire and feel that they want to retire,” she explained.
“But I’d work into my 70s, I’m only 57 now but I don’t intend to finish work in a couple of years’ time.”
Main image: An older man counting Euro notes. Picture by: Rodica Ciorba / Alamy Stock Photo