Irish government with new proposal; One may have to wait longer to receive retirement benefits

The Irish government’s new proposal to call back the retirement benefit from certain existing schemes for the ones who retires from the service at the age of 50.

The government is preparing to end the system that currently entitles people to retirement benefits, even if they retire at the age of 50.

At the same time, the government aims to raise the retirement age in the private sector from a maximum of 70 to 75 years.

The report says that if the government’s new proposals are approved, people will not be able to invest their pension income in an Approved Retirement Fund (ARF).

The latest report from the Inter-Departmental Pension Reform and Taxation Group, which includes representatives from the Department of Public Expenditure, Reform, Social Security and Revenue, suggests sweeping changes to the pension scheme in Ireland.

Currently some pensioners, i.e. those who have quit their previous jobs, can use their pension savings from the age of 50 onwards. However, those who are continuously employed or have personal retirement savings accounts (PRSAs) or retirement annuity contracts (RACs) are eligible for pension benefits only from the age of 60.

At the same time, as part of the new proposals, the minimum age for people to receive their pension benefits may be raised to 55.

According to the report, if the pension fund could have been fully withdrawn by the age of 70, the fund would have to be paid in full only by the age of 75.