The proposal, contained in a report on the country’s ageing population launched by Finance Minister Paschal Donohoe, could see workers unable to get a State pension until they are in their 70s.
The model contained in the report is based on the State pension age (SPA) being increased to 67 this year, and then 68 in 2028. After that for every year of an increase in life expectancy, the SPA would rise by nine months.
To put that in context, the report predicts men’s life expectancy to rise from 81 to 87 by 2070, and from 85 to over 90 for women.
The Department of Finance says the proposal could “significantly reduce the cost burden” on taxpayers. It says slower revenue growth and rising expenditure will put significant pressure on the public finances in the future.
“Significant structural reforms are, therefore, absolutely necessary to meet the fiscal costs associated with population ageing,” the report states,
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