Reform of the State Pension System in Ireland
November 14, 2022
The Minister for Social Protection, Heather Humphreys, has announced a series of significant reforms to the State Pension System from January 2024. The measures are in response to the recommendations from the Pension Commission, and are summarised as follows:
- The State Pension age will be maintained at 66 years and a new flexible pension age model will be introduced.
- People will have the option to continue working up until the age of 70 in return for a higher pension. Based on current payment rates, the estimated rates for those retiring between the ages of 66 and 70 would be as follows:
| Age | Estimated State Pension |
| 66 years | €253 |
| 67 years | €266 |
| 68 years | €281 |
| 69 years | €297 |
| 70 years | €315 |
- Move fully to a ‘Total Contributions Approach’ for calculation of individual pension entitlements on a phased basis over 10 years starting in 2024.
- State pension entitlements will be enhanced for carers which will mean that people who have to give up work over a long duration to care for a loved one, will have their time spent caring recognised in the pension system.
- The Department of Enterprise, Trade and Employment will introduce measures that will allow, but not compel, an employee to stay in employment until State Pension Age.
- Workers will be provided with access to a PRSI contribution statement service each year in a manner that enables them to understand their entitlements.
- The long-term sustainability of the State Pension system will be addressed through incremental increases in social insurance rates over time. The level and rate of increase in social insurance rates will be determined on a structured basis every 5 years.
- A commitment to explore the design of a scheme that would modify the current Benefit Payment for 65-year-olds to provide a benefit payment for people who, following a working life of 40 years or more, are not in a position to remain working in their early 60s.
