People who work until they are 70 will be entitled to increased pension payments under new plans.
The Government is set to introduce five new rates of payments that will increase by 5% every year a person works. Those who work until the age of 70 will receive €315 per week under the new plan.
The current pension payment is €253 a week for employees who work until they are 66. People retiring at 67 will be paid €266 a week, the Irish Independent reports.
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Someone retiring at 68 will receive €281 while those retiring at 69 will get €297, according to the rates revealed by Social Protection Minister Heather Humphreys.
This decision has been brought in with the hopes of ending the long-time debate on increasing the pension age to 67. These rates are expected to see a major increase in the Budget. Ongoing negotiations hope to see the pension rate jump by at least €10 a week.
The new pension system is expected to be in place by 2024 and will be paid for through increases in PRSI. However, these tax hikes will be introduced gradually over a number of budgets based on an actuarial review of the Strategic Investment Fund (SIF) which oversees the State pension.
Currently, some employees can claim a full pension based on yearly contributions but the new system will see all workers have to work a certain number of years to receive the full payment. Additionally, a ban on mandatory retirement ages will also be introduced so people can take advantage of the new flexible pension system.
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