Social Protection Minister Heather Humphreys has said a new pension scheme will be introduced from January 1, allowing people to choose to work until they are 70 in exchange for higher benefits.
The age at which people can begin receiving the national pension will remain at 66.
The new system will allow those eligible to claim a pension to receive a higher deferred and adjusted payment rate for up to four years.
Mr Humphreys said the changes would allow people to improve their social security records, potentially increasing their pension payout rate when they retire and allowing those who start working later in life to make additional contributions to qualify for the state pension. He said there is a possibility.
She said: “The main purpose of this change is to give people more choice.
“People who want to receive National Pension (contributions) at age 66 can still do so. They still have the option of continuing to work.
“What is new is the option to delay the start date of receiving the national pension (contributory type).”
She added: ‘While it may seem like the obvious choice to start collecting your pension as soon as you qualify, this may not be right for everyone.
“For example, if people can work longer and continue to pay PRSI, they may be able to accumulate contributions and increase the rate of their state pension payments.
“Or they may enter the workforce later in life and not have the contributions needed to qualify for a pension at age 66.
“These new options allow you to accumulate an additional four years of Social Security contributions to meet the eligibility criteria, which was not previously available.
“And if you want, you can potentially increase your payout rate by deferring your pension date from age 67 to age 70.”
This measure is being introduced for people who will turn 66 from January 2024, and the first people to be subject to the increase will be those who will turn 67 in January 2025.
Based on who is eligible to receive a pension of up to 277.30 euros when they reach the age of 66 on or after January 1st, the maximum proposed amounts for each year’s deferral are as follows: At 67 years old he earns 290.30 euros. 304.80 euros for a 68 year old. 320.30 euros for a 69 year old and 337.20 euro for a 70 year old.
These fees are subject to change in future budgets.