Major pension reform is introduced from 1st January 2024.
This new flexibility allows people to defer claiming the State Pension (Contributory) at age 66 to receive an actuarially adjusted higher payment rate up to age 70.
The change also allows people to improve their social insurance record and potentially increase their rate of State Pension payment when they retire or allow those who started working later in life to make additional contributions to qualify for a State Pension (Contributory).
Minister for Social Protection, Heather Humphreys said: “The main aim of this change is to provide people with more choice. Those who wish to get their State Pension (Contributory) at age 66 can still do so. 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 State Pension (Contributory).
“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. For example, 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.
“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. And, 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.”
