Retirement age to rise in pension plan

A sweeping pensions shake-up would see people forced to work longer, hand over more of their income, and be means tested on payments they receive.

The recommendations are contained in a hard-hitting report from the OECD and strongly signal that the retirement age — already set to be pushed back to 68 — should be extended further to take account of greater life expectancy.

Switching from the present “complex and inequitable” State system to a basic universal one, which could be means tested, was needed as about 900,000 workers had no personal safety net for old age, according to the review, ordered by Social Protection Minister Joan Burton.