Raising the statutory retirement age will, according to SIPTU, “save little money” and will not guarantee “sustainability of pensions”.
The union will tomorrow announce to TDs and senators of the Oireachtas Social Protection Committee that the Pension Commission, which has recommended raising the retirement age, used data that “significantly” overestimated the savings from raising the retirement age.
The union argues that data from the Treasury Department and the Irish Fiscal Advisory Council showed that increasing the retirement age would save “only” between 10 and 15 percent of the total increase in pension spending.
SIPTU will inform the committee that these models can “significantly overestimate” the savings as they do not take into account “compensation costs” and the impact on public finances.
The union will also call on the Pension Commission to “investigate the discrepancies between savings estimates”.
It will also say that the increase in the statutory retirement age has “increased the hardship of workers forced to retire at an age before the state pension is due”.
It says that “many employees” want to stay in employment until they reach the statutory retirement age because they can continue to work and “will see”
substantial loss of income when they retire ”.
Family Carers Ireland, a charity that represents over 500,000 carers, will also raise concerns tomorrow that those who have cared for others for more than 20 years – “long-term carers” – will not be eligible for the state pension because they have 520 Contributions not paid are necessary.
“This is a particular challenge for long-term carers, who often had to stop working at a relatively young age after having a child with special needs,” says the charity.