Review recommends greater pensions for working longer

The National Pensions Board has reportedly recommended that people be offered larger pension payments if they delay their retirement past the age of 65.

Reports this morning said the board had recommended that workers who forego their state pension at the age of 65 be given a one-third-higher payment when they reach the age of 70.

Their estates would also be compensated if they died in the intervening period.

Elsewhere, the Pensions Board has reportedly recommended that tax relief be available at 42% on all pension contributions, regardless of whether the worker pays tax at the higher rate.

This morning's reports said it has also suggested that the State could match workers' contributions into Personal Retirement Savings Accounts.

The PRSA scheme was set up by the Government in an effort to boost pension coverage, but has failed to attract much interest.

The Pensions Board was asked to make recommendations last February amid concerns that almost half of all workers have no private pensions.

The Government is particularly worried that Ireland's ageing population, coupled with poor private pension coverage, will put huge pressure on the State pension scheme in future years.

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