Workers who are forced to retire at 65, a year before they can claim the state pension, are losing out on €2,340.
A report by the government has revealed that those who are made to retire at 65 miss out on the above sum as they have to rely on Jobseekers’ Benefit instead of the State Pension, which is paid at a lower rate.
The State Pension is only paid out to those aged 66 and above.
Public Expenditure and Reform Minister Paschal Donohoe
Jobseekers’ Benefit is currently €188 a week, €45 per week, or €2,340 per year, less than the State Pension the report has read out.
Those whose employment contracts oblige them to retire at 65 can also no longer claim the State Pension transition payment, which was abolished.
Public Expenditure Minister Paschal Donohoe who launched the report noted very few private sector firms have adjusted their retirement date to align with the new State Pension age of 66: “Without adequate action, the source of income for those retiring or compelled to retire before the prevailing State Pension age will become a bigger issue over time,” it says.
