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Government 'should not increase pension age as people live longer' - Murphy

One TD says the pension age should not be increased because people are living longer. People Befo...
Jack Quann
Jack Quann

21.15 9 Sep 2021


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Government 'should not increas...

Government 'should not increase pension age as people live longer' - Murphy

Jack Quann
Jack Quann

21.15 9 Sep 2021


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One TD says the pension age should not be increased because people are living longer.

People Before Profit TD Paul Murphy was speaking as a move to raise the State pension age to 67 will be delayed by at least seven years.

The State pension age was originally meant to go to 67 this year to address looming affordability issues.

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Rising life expectancy and an aging population means retirement spending is set to soar.

But the Government-established Pensions Commission has recommended raising the age should be deferred until 2031.

Deputy Murphy told The Hard Shoulder he thinks this is a mistake.

"I disagree with the idea that we have to increase the pension age because people are living longer.

"We're talking about workers who have worked their whole lives, who have paid tax their whole lives, who have looked forward to being able to retire at 65.

"Now it's effectively 66, and they would like it to go up to ultimately 68 - and presumably they'll keep going as life expectancy increases."

He says instead of changing the retirement age, employers PRSI should be increased.

"We have the lowest rate of employers PRSI in the European Union - just to increase it by 2% - which would bring us closer to the European average, but would still be quite a bit off would raise €2bn a year.

"We have a younger population, by a significant [amount] actually than the EU average, and we currently... have a higher than the EU average in terms of pension age."

And he says top public service workers should be taking less.

"Politicians pensions should absolutely be cut, and certainly when you're talking about the pensions of those at the very top of the public service - those on €100,000-plus - the kind of pensions that they're entitled to are absolutely over the top.

"But for your average low to mid paid public sector worker... their pensions are effectively deferred wages.

"They are paid, it's part of their contract, it's part of the reason they decide to work wherever they decide to work.

"And we can't be taking their deferred wages off them".

Government 'should not increase pension age as people live longer' - Murphy

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Main image: Paul Murphy is seen on the plinth outside Leinster House, Dublin launching the 'Workplace Ventilation (Covid-19) 2021' Bill in August 2021. Picture by: Sam Boal / RollingNews.ie

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Life Expectancy Paul Murphy Pension Age Pensions Commission State Pension Age

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