Age Action has warned that the Government must introduce measures to support older workers and help them remain in employment, following the announcement today that the qualification age for a state pension is to be increased.

Many older workers are already being let go long before they reach 66, and are struggling to find alternative employment. “It is imperative that the phased introduction of an increased pension age coincides with Government measures to support older workers to keep them in employment and incentives for employers to retain them,” Mr Timmins said. “Otherwise the big losers will be older workers – those in their late 50s and early 60s.”

“What today’s announcement means is that the gap will get larger between the time people retire and when they are able to receive the State Pension they have contributed to all their lives,” Age Action spokesman Eamon Timmins said. “Many people currently working in the private sector have signed contracts to retire at 65, but they may not be able to draw down their State Pension until they are 66, 67 or 68. This means they may have to live for up to three years from their own resources, by seeking another job, or drawing the dole.”

It appears from today’s announcement that the State Pension (Transition), which had been used to make payments to people between 65 and 66 – the current qualification age for the State Pension – will cease from 2014. “This will create a poverty trap for some older workers unless they can be supported in employment after 65,” Mr Timmins said.

Age Action also expressed concern at the Government’s commitment to keep the value of the State Pension at 35% of average earnings lacked ambition in the longer term. “For the current generation of pensioners – half of whom are dependent on the State Pension for their income – this means their income will hover around the poverty line for the rest of their lives,” Mr Timmins said.

Overall, Age Action welcomed the fact that the Government has responded proactively to address the future funding of pensions in Ireland.