The Chief Executive Officer of Active Retirement Ireland, Maureen Kavanagh, has expressed her approval for a new piece of legislation that would enable workers to delay retirement until they reach 66, the age at which they are entitled to receive their state pension. This was announced in an interview with RTÉ Radio 1’s Morning Ireland programme.
Ms Kavanagh, who leads the national network of proactive retirement organisations, acknowledged the new law as a measure to narrow the gap between compulsory retirement age often imposed in the private sector, and the commencement of the state pension. Kavanagh reiterated that while she doesn’t subscribe to obligatory retirement ages, the option of choice was paramount. She reinforced that individuals should have the liberty to contribute to the workforce for as long as they can and wish to.
However, Kavanagh also noted the need to account for those in roles that are physically demanding or involve care work, who might not be able to continue working until the age of 66. Another key aspect she pointed out was the necessity to prevent the pension age from escalating above 66 and to ensure the working environment was accomodating older individuals, through initiatives like retraining opportunities for those in their fifties and sixties.
Currently, she highlighted that workers in certain sectors are required to retire at 65, which often leads to negotiations to extend the term by a year or rely on social welfare until they reach 66 and qualify for state pension. It was also acknowledged that there’s a considerable disparity between those with private pensions and those dependent on the state pension, according to Kavanagh. She mentioned the ongoing efforts by the Pension Reform Commission to introduce a new pension system in which both employers and employees would contribute.
While many believed they were contributing to their pension through PRSI, Kavanagh stressed that studies had demonstrated income is the most significant hurdle for individuals planning for retirement.
Ms Maureen Kavanagh highlighted the immense societal contribution of those who choose to retire as per their convenience and while they’re still in good health. She acknowledged that the current retirement fund falls short of the government’s assurance of 34% of the mean income. Ms Kavanagh expressed hopes, however, that the proposed pension reforms and the government’s commitment will eventually uplift the pension to the promised 34% level, thus providing better retirement funds for future retirees.
The significance of the retirees’ decision to volunteer or take on care roles must also be duly recognised and appreciated, according to her. Current legislation permits workers, particularly those in the private sector who are typically compelled to retire at 65, to inform their employers in writing should they wish to continue employment beyond the mandatory retirement age.
The particular concern has led to a growing number of ageism cases reported through the Workplace Relations Commission, with over 500 cases noted in 2022 alone. Additionally, portions of the current legislation have faced numerous legal challenges.
The Irish Congress of Trade Unions (Ictu), a keen campaigner on this issue, has expressed its appreciation for the recent Cabinet’s decision to consider the proposal put forth by Simon Coveney, the Minister for Enterprise.