It’s all about the money, money, money.
A study from 2016 showed that Ireland’s pension gap is the second largest in Europe just behind our neighbours in the UK and that gap looks set to expand.
A think-tank by the Economic and Social Research Institute (ERSI) has suggested that Irish people should work until they are 70-years-old to qualify for a state pension.
Originally, people were able to apply for the state pension at 65 but since the bailout, the age has increased to 66.
By 2021, that will jump again to 67 and by 2028, it is expected to be 68.
However, the idea of raising the age to 70 has been floated around in the ESRI meeting.
Peter Cosgrave of CPL recruitment told Highland Radio that, “they are saying to do it now because the conservative estimates say we’re adding €5 billion to our costs every five years.
“Or a couple of billion to €5 billion depending on who you speak about based on pensions costs. Everyone calls it a time bomb but every Government only goes into power for four years or maybe eight years. So, it’s kind of one of these things that you don’t really want to touch.”
This move will follow in the footsteps of Australia, who also want to raise the age to 70 claiming that it will save their government $3.6 billion.
However, fitness expert Karl Henry told JOE that it could be good for a person’s health to work until 70.
“To be honest it emphasises the importance of health and ageing healthier. Having a purpose in your life and a reason to get out of bed is a powerful thing and work can provide that. Above all this, it is yet another reason to mind the body, eat well and exercise to ensure you are as healthy as possible.”
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