The Minister for Social Protection has warned that pension rules need to change as the Irish population lives longer.

Her comments come as the Organisation for Economic Co-operation and Development (OECD) has told Ireland to put in place either a universal basic pension scheme or a single means-tested pension both topped up with a compulsory private pension.

The review from the OECD was commissioned by Social Protection Minister Burton.

It says Ireland needs to make its pension system "simpler and fairer" so that everyone gets sufficient income for a decent standard of living when they retire. The review says that Ireland spends much less than most European countries on public pensions at just 7.5% of GDP, much less than the European average of 11.3%.

Ireland's basic state pension is "relatively generous" compared with other OECD countries the report says, at around 35% of average wages, it is second only to New Zealand.

This it states goes some way to explaining why Ireland has a low pensioner poverty rate of 10%, below the OECD average of 15%.

Minister Burton said "The OECD report is an extremely comprehensive review amounting to some 150 pages of analysis and commentary. The report is informed by the extensive consultation which I requested the OECD conduct and also takes account of the considerable body of work undertaken in Ireland on the analysis of the pension system and the different proposals for reform put forward in recent years".

And she goes on to say "The review also provides excellent comparative data between the pension arrangements in Ireland and those in OECD countries with comparable systems. It draws on international experiences and examples in the recommendations and options proposed for reform".

Minister Burton announced that the review would be brought to Cabinet and discussed by her colleagues over the coming months.

Speaking to the Right Hook here on Newstalk, the Minister explained why some people who are still working are been given the State pension.

Summary of Key Main Findings:

• The economic situation of pensioners in Ireland is comparatively good, both with respect to other age groups in the population and in international comparison.
• Ireland is facing challenges on the financial sustainability of the pension system as the population ages.
• Private pension coverage, both in occupational and personal pensions, is uneven and needs to be increased urgently.
• Pension charges are expensive for small occupational schemes and personal pension schemes.
• The State pension system lacks transparency.
• The State pension scheme could be modernised to encourage working longer in line with the prevailing international trend.
• The new scheme for the public service is being phased in only very slowly and is unlikely to affect a majority of public sector workers for a long time.

Minister Burton launched of the OECD review this afternoon.