Any changes to the retirement age, or PRSI, will be “gradual,” says Treasury Secretary Paschal Donohoe


Any changes to the state retirement age, or PRSI, will be “gradual,” according to the Treasury Secretary.

Aschal Donohoe spoke after Social Protection Secretary Heather Humphreys said yesterday that the government would take a decision on raising the retirement age in a few months.

Although a decision on the pension commission’s recommendations is expected to be made before the summer, it will now likely be several months before a formal decision is made.

“Any decision we make about the sustainability of the Social Security system, where we are in terms of the sustainability of our pensions, will be incremental changes, but they will be changes that go in a clear direction,” Mr. Donohoe said.

Taoiseach Micheál Martin told parliamentary party Fianna Fáil last Friday that the retirement age should not be raised above 66, saying he favors small PRSI increases instead.

“We’re talking about a few months, this is a decision that will affect people over the next 40, 50 years,” Minister Humphreys said.

“It’s better that we take a few more months and do it right.”

The Pensions Commission has recommended raising the retirement age to 67, but not for a further number of years.

The statutory retirement age is currently 66 years. The Commission has recommended raising that age by three months per year after 2028 to 67 in 2031, before raising it to 68 in 2039.

This could be achieved in part by increasing PRSI contributions from 4 per cent to 11 per cent for the self-employed.

Earlier this year, however, the Oireachtas Joint Social Protection Committee decided to leave the qualifying age at 66.

Fianna Fáil TDs and senators have been pushing hard in recent months for their party leader to keep the age at 66 after it became a key issue for the party in the 2020 general election.

However, Fine Gael took the view during the 2020 general election that the retirement age should be more flexible, with a €25 increase in payment, including new payments for those retiring at 65 and 66. Any changes to the retirement age, or PRSI, will be “gradual,” says Treasury Secretary Paschal Donohoe

Fry Electronics Team

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