People will now have the option to work until they are 70 under new pension changes announced today.
If someone chooses to work until then, and not retire at 66, they will receive an adjusted higher State pension rate when they do retire.
Social Protection Minister Heather Humphreys has said the new 'flexible' system will provide people with more choice when it comes to retiring.
"Those who wish to get their Contributory State Pension at age 66 can still do so," she said.
"They also still have the option of continuing to work. What’s new from today is the option to delay the date on which people start receiving their Contributory State Pension.
"It may seem like the obvious choice to start receiving your pension payment as soon as you’re eligible, but this won’t be right for everyone".
'Enhanced rate of payment'
Minister Humphreys said being able to work longer and continuing to pay PRSI gives people the chance to build up contributions and potentially increase their State pension payment rate.
"Or you may have entered the workforce later in life and may not have the required contributions to qualify for a pension at 66," she said.
“These new options will allow you an additional four years to build up social insurance contributions to meet the qualifying criteria, which you wouldn't previously have had the option to do.
"Deferring your pension date to fall between 67 and 70 may result in an enhanced rate of payment if that’s what you want to do," she added.
Based on a person qualifying for the maximum rate of €277.30 Contributory State Pension on reaching age 66 on or after January 1st 2024, the proposed maximum rates for each year of deferral are as follows:
- €290.30 at age 67
- €304.80 at age 68
- €320.30 at age 69 and
- €337.20 at age 70
The measure is being introduced for those who turn 66 from January 2024, meaning the first people to be eligible for a higher rate will be those who turn 67 in January 2025.
