The Government is being urged to amend an anomaly created by changes to the retirement pension in 2014 whereby recent retirees are placed on Jobseekers Allowance for the first 12 months of their retirement instead of receiving their State Pension, leaving them around 20 per cent less well off.
On January 1st, 2014 the age of eligibility for the State Pension increased to 66, meaning workers who retire at 65 are not eligible to receive their pension for one year.
“As part of a series of changes, the age of eligibility for the State Pension will increase to 67 in 2021 and to 68 in 2028, further escalating the need for immediate action by the Government,” former Mayor of Fermoy Tadhg O’Donovan told The Avondhu this week.
“As it currently stands, rather than availing of the full contributory pension of €230.30 per week, those who retire from 2014 onwards instead have to apply for Jobseekers Allowance, which is paid at a reduced rate of €188 per week.
This anomaly, Mr O’Donovan said, between the retirement age of 65 and the age to receive a State pension (set to rise further over the next 12 years) could be resolved by allowing employees the option to work until they are 66.
Full report in this week’s Print & Digital Edition
