IRELAND - Speculation that the Irish Cabinet is considering extending the retirement age beyond 65 in exchange for a higher state pension is expected to be well received by the Irish workforce.
The ability to work beyond 65, and receive a higher state pension is believed to be one of the recommendations in the national pensions review presented to the minister for social affairs, Seamus Brennan.
According to a recent national survey conducted by Standard Life, the survey found 44% of workers would be prepared to work until 70 if the state pension is made attractive enough.
Standard Life’s chief executive, Michael Leahy said: “As long as this is voluntary rather than compulsory, our survey suggests broad popular support for the flexibility to work beyond 65.”
The firm’s survey also reveals support another recommendation reported to be in the national pension review, yet to be publicly released, which would allow access to PRSA funds prior to retirement.
Standard Life found that half of those currently without a pension fund would consider taking joining if they could access some of their funds before retirement.
The alleged recommendation could please Niall Doyle, corporate affairs manager of the IIF, who submitted a proposal calling for individuals to have full responsibility from the age of 18 for their contributions, and access to a portion of the fund at least twice before retirement.
It has also been suggested that the state could match workers’ contributions into Personal Retirement Savings Accounts to boost up-take, a concept similar to the Australian government’s co-contribution scheme.
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