People forced to work beyond 65 to pay for mortgages

WORKERS who are forced to retire at a set age are asking their employers if they can stay on to pay off 35-year mortgages and school fees.

The State’s equality body has revealed that a huge change in the ageing workforce’s financial prospects is driving many to seek fixed-term contracts as they near retirement.

The Irish Human Rights and Equality Commission, which provides legal advice to workers, said there has been a hike in queries from employees who must retire at 65 due to compulsory retirement clauses in their contracts, but can’t afford to do so.

Officials at the commission said many workers have put off having children until later in life, or may have had a second family, while spiralling housing costs have meant far fewer have paid off 20-year mortgages than used to be the case.

Others are motivated to work longer because they must wait longer to draw the State pension.

Workers must reach 66 to get the State pension now, but that will rise to 67 in 2021 and 68 from 2028.

A worker who is 65 and made the necessary contributions can claim Jobseeker’s Benefit until they are 66.

But there is a €45.30 a week difference between the benefit and the full contributory pension.

After this, they may qualify for Jobseeker’s Allowance, but it is means-tested.

Chief commissioner of the Irish Human Rights and Equality Commission Emily Logan said attitudes to retirement are changing.

“This can be for a variety of reasons, both personal and financial,” she said. “Quite often, people may enjoy their job and wish to continue in the workforce.

“However, it is also a fact that people can have financial commitments that last a lot longer than they used to, for example a longer mortgage, or their children’s continuing education, or they may need more time to build up their pension.”

A spokesperson for the commission said these changing scenarios were a driving force in drawing up new guidelines, published today, to advise workers and employers on the legal issues surrounding working longer.

There was a 31pc increase in the number of people who said they experienced age discrimination, which includes instances directly related to retirement in their workplace in the last year, according to the commission.

Cases of age discrimination related to employment made up around 11pc of cases raised by members of the public in 2016, but rose to 14pc last year.

Employers are not obliged to give staff a fixed-term contract once they reach their compulsory retirement age. But if they do, they must ensure they are not treated less favourably than other staff in the same job on permanent contracts.

They must also ensure that a compulsory retirement clause exists in their contract or they could face unfair dismissal claims. And workers are not guaranteed another contract after their first one expires.

A spokesperson for the commission warned that the complex legislation relating to the setting of retirement ages and offering fixed-term contracts creates the potential for age-related discrimination.

“The guidelines consider the setting of compulsory retirement ages, and the dismissal of employees who reach that age,” he said.

Hike in queries from employees forced to retire, but can’t afford to