Maureen Kavanagh, the chief executive of Active Retirement Ireland has welcomed Cabinet approval for legislation allowing employees to continue working until 66, the age at which they become entitled to the State pension.
Speaking on RTÉ radio’s Morning Ireland, Ms Kavanagh said it was a move to bridge the gap that exists between mandatory compulsory retirement faced by many in the private sector and the fact that the State pension commences at 66.
“However, what we would warn against is that there must always be an option. Mandatory or compulsory retirement ages, we don't agree with them. People should be able to work until they can and for as long as they can, and that choice is really, really important.
“However, on the other side of it, we also acknowledge that there are many, many professions - hard labour work, caring professions where people probably can't even continue to work up to 66.
"So that needs to be taken into account as well. And over the years, what we have campaigned for first is to stop the pension age from rising beyond 66, but equally to look at how our older people are treated within the employment sector. Are there opportunities for older people to retrain as they reach their 50s and 60s?”
Ms Kavanagh pointed out that at present people in some sectors had to retire when they reached the age of 65 and then had to either negotiate to stay on another year or go on social welfare until they reached 66 and could get the State pension.
If people wanted to stay working for another few years they should have that option too, she said.
Ms Kavanagh acknowledged there was “an enormous gap” between those on private pensions and those who would be reliant on the State pension. “It's a major issue. And the Pension Reform Commission has been looking at different ways, pensions coming in that employees and employers will have to contribute to.”
Many people felt that they were contributing towards their pension by paying their PRSI, she said, but research had shown that income is the biggest barrier for people planning to retire.
Ms Kavanagh said that at present the pension was not at the promised level of 34 percent of the average wage. “It is below that. So if the pension was raised, which is a promise that the Government has made and the Pension Reform as well, if it was raised to 34 percent of the average wage, we would be looking at people coming into a higher pension.
“The main thing that we want to say is that there is a huge value for the amount of people who do retire and retire when they can, and when they're healthy, because their contribution to society is immense as they volunteer, as they go into caring roles. So that needs to be valued as well.”
