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Wednesday March 10 2010
Sir, Although there may be an argument for raising the pension age of those born in the past 20 years, I don't see where the data used in the pensions Green Paper could apply to anyone born before 1974.
I have read the Irish life tables from the 'Central Statistics Office' and they reveal a different picture from the one suggested in the framework document. Irish life expectancy is near the bottom of the 15 countries in the EU – below Malta and Slovenia! The CSO also records the fact that the Irish live one year less than our European counterparts. Furthermore, they show that over five per cent of the population will die between the ages of 65 and 68 – effectively denying their legitimate expectation to have some form of pension.
Based on the 'acturial' value of contributions to the State; how can this new policy be justified? If it is based on cost, then surely it is the amount of the pension that should be reduced to 83 per cent of its current value.
Quite some time ago, the UK announced it would phase in higher retirement ages. Our government's proposals are far more punitive and quicker to implement. A man in his 40s in the UK will retire at 66; but, even though we live one year less than someone in the UK, our government will not allow us to retire until the age of 68.
The need to pay PRSI for 30 years in order to qualify for the full state pension is also being introduced far too quickly – why are there no phases, or hybrids of the two schemes, for something as important as this? Someone due to retire on 1/1/20 may only qualify for one-third of the pension – but someone who retires a day earlier may enjoy full benefits. What are the legal implications of this?
Will there be a way to make voluntary contributions beyond the current five years? Will people who are unemployed, but not eligible to claim benefit, be able to make voluntary payments? (The framework document only refers to additional contributions for home-makers' and people who want to contribute 'after' the retirement age.)
I doubt that many people over the age of 40 will be able to even make 30 years of credits.
Yours sincerely,
Mark Doherty-Youds Tiernaboul, Killarney.
