Harney rejects retirement age of 75 as answer to pension crux

THE GOVERNMENT yesterday rejected a report recommending raising the age of retirement to 75 in order to stave off the pensions time-bomb.

In a rapid rebuttal, Tánaiste Mary Harney and Minister for Social and Family Affairs Mary Coughlan ruled out any increase to the length of working lives despite stark warnings from experts that the pensions bill would be unsustainable.

Responding to a recommendation from the Society of Actuaries in Ireland that the cost of State pensions was set to more than double by 2050, Ms Harney said the Government was setting aside one per cent of GNP to meet future pension needs in anticipation of problems in years to come.

“I do not believe the solution is to increase retirement age to 75. People should have time after their working lives to enjoy themselves,” she said.

In making its proposal, the Society if Actuaries said yesterday that improvements in life expectancy together with falling birth rates meant older people would make up a greater portion of the population.

By 2050, there would be two adults working for every pensioner, whereas there were six workers for every retired person today.

Speaking at the National Ploughing Championships at Ballinbrackey, Co Meath, Ms Harney said many people want to work their entire lives. She had seen people work into their 70s and 80s. But that should be on the basis of free choice, not something to be forced on people, she said.

Irish Congress of Trade Unions industrial officer Fergus Whelan said the proposal was morally wrong, misconceived and would amount to a terrible breach of trust between the Government and its citizens.

“I’m very disappointed with the society because over the years they have made some very useful contributions to the debate on pensions. But this harebrained suggestion does not fall into that category,” he said.

Age Action Ireland also criticised the suggestion that the retirement age could be raised, saying the choice should be up to the individual.

Older people deserve a choice in whether to work or not work, according to Age and Opportunity, a national agency for older people.