Richard Boyd Barrett
Ceist:516. Deputy Richard Boyd Barrett asked the Minister for Social Protection the estimated full-year cost of lowering the pension age to 65 years; and if he will make a statement on the matter. [51272/26]
Amharc ar fhreagraTuesday, 7 July 2026
Ceisteanna (516)
Freagraí scríofa
Actuarial analysis by officials in my Department indicates that, based on the rates of payment in 2026, the full year cost of reducing the State Pension age to 65 would be an estimated extra €550 million for one year. Demographic pressures will increase this additional cost considerably in subsequent years.
This estimate takes account of decreased expenditure arising from the non-payment of working age social insurance payments that would no longer be payable at age 65, including Jobseeker's Benefit, Benefit Payment for 65 year olds, Illness Benefit, and Invalidity Pension.
The Deputy may wish to note that the estimate of €550 million relates to social insurance payments only. High-level estimates indicate social assistance expenditure changes would not markedly alter the estimate of €550 million.
The estimate takes no account of any additional costs to public sector pensions, or potential knock on effects for other Government departments. Matters relating to public service pensions fall within the remit of the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation.
The "Benefit Payment for 65 year olds" was introduced to provide a benefit payment for people who are aged 65 and who are required to retire, or who chose to retire, without a requirement to sign on, engage in activation measures or be available for, and genuinely seeking work. This payment was designed specifically to bridge the gap for people who retire from employment or self-employment at 65 years of age but who do not qualify for the State Pension until age 66.
Demographic projections indicate significant increases in the number of future State Pension recipients which will impact on State Pension related expenditure. Clearly, reducing the State Pension age to 65 years of age would be very expensive and would require either considerable additional revenues, or, if introduced on a cost-neutral basis, very significant diversion of funds from elsewhere.