What you Need to Know About Retirement Ages
In contracts of employment and employee handbooks, many Irish employers include a mandatory retirement age. In October 2021 the report of the Commission on Pensions was published. The report has recommended that legislation should be introduced to prevent employers from setting a compulsory retirement age below the state payment age which is currently 66.
In 2021 it was intended to further increase the State pension age to 67 from 2021, but the legislation was enacted in 2020 that suspended the increase. The Pensions Commission’s report has recommended that legislation should be introduced to prohibit employers from setting a retirement age below the State pension age. This will not affect an employee’s ability to retire at an earlier age if they choose to.
The Pensions Commission also recommends that the State pension age should increase gradually by three months per year from 2028 to reach 67 in 2031. Additionally, further increases should be implemented every second year after 2031, with the State pension age eventually reaching 68 in 2039.
It is likely that The Commission’s report has been referred to the Cabinet Committee and is being considered to bring an implementation plan to the government by the end of March 2022.
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