An economist has suggested that Irish people would “accept” a later retirement age if they are offered an incentive to work later. 

Ireland’s population is expectedly to age significantly in the years ahead, as birth rates fall and advances in medicine prolong life expectancy. 

It means there will be far fewer taxpayers to pay for a larger number of people not in work. 

 “The problem is that when you're on pension, you're not producing goods or services for people,” Trinity Professor John FitzGerald explained on Newstalk Breakfast.  

“You are just a recipient of money from the taxpayer… It's going to be a huge problem.

“As you have a large number of people on pension and the taxpayer and pension funds have got to pay them, the ratio of the people not working to the people working changes dramatically over the next 20 or 30 years. 

“The Department of Finance and various others have laid this out; the taxes will have to be much higher to pay for the pensioners in 30 years' time than they are today.”

An older woman working in a shop. Picture by: Jeffrey Isaac Greenberg 7+ / Alamy. 

Currently, Irish people receive a State pension at the age of 66. 

At one point Fine Gael backed a retirement age of 68, but were forced to give up the policy by Fianna Fáil. 

“In Ireland, if you leave out farmers, 56% of people between 60 and 64 are working,” Professor FitzGerald added.  

“It's 70 to 75% in Northern Europe and it can go as low as 30% in France. 

“The Irish Government did propose raising the pension age, got feedback and backed off.” 

An elderly pensioner holding leather wallet. Picture by: Alamy.com. 

Professor FitzGerald suggested the Government should try and incentivise people to stay in work longer. 

“Gving people the option and some encouragement to continue working may be a better route than changing the law and just increasing the retirement age, which the government have decided not to do,” he said. 

“They've backed off it because it's politically unpopular; a more popular way is a carrot rather than a stick.”

One possibility, Professor FitzGerald believes, would be a “somewhat higher” pension to those who worked longer. 

“The Dutch Government has increased the retirement age and will continue to increase the retirement age - I think 68 they're moving to,” he said. 

“And people accept it if you explain the reasons and if there are incentives to do so.”

Main image: A pensioner by the heating. Picture by: Alamy.com.