STATE PENSION AGE TO STAY AT 66

The government has committed to maintaining the qualification for the State Pension age at 66, though the pledge will be funded by unspecified PRSI increases for employees and employers. The current State Pension is paid at the rate of €253 per week for people who retire at 66.

From January 2024, people will have the option to continue working up until the age of 70 in return for a higher pension. Under the proposed flexible model, and based on current payment rates, the five weekly contributory pension rates are estimated to be as follows:

Age 66 - €253

Age 67 - €266

Age 68 - €281

Age 69 - €297

Age 70 - €315

Actuaries estimate that people who are currently age 65 will live on average another 21.8 years (men) and 24.2 years (women).

On average, therefore, men would be c.€6,000 better off over their lifetime if delaying pension drawdown until the age of 70 in terms of the total state pay-out. For women, the difference would be c.€9,000 over their lifetime.