Retirement reforms will give workers real choice – Nelson Murray

Introducing a consent-based approach to retirement will ensure workers have more freedom to choose when to retire, a Fine Gael Senator has said.

Senator Linda Nelson Murray said enacting the Employment (Contractual Retirement Ages) Bill 2025 would ensure workers can remain in employment until they reach the state pension age.

Senator Nelson Murray said: “Many people want the freedom to remain in the workforce up to the state pension age but can’t because of contractual restrictions.

“New legislation being brought forward by the Fine Gael Minister for Enterprise, Tourism and Employment, Peter Burke, suggests a consent-based approach to retirement. It provides employees with a right, but doesn’t compel them, to extend their employment terms to cover them up to age 66, if their current contract states retirement age must be at age 65.

“Some people dread retirement. We all know people who love what they do and would love to keep working. They shouldn’t be denied this choice to keep working if that is what they want to do

“Having the option to stay working is so important for so many people. We want to encourage and support longer and fuller working lives where older people are facilitated in continuing in employment,, until the age at which they can first access the state pension.

“Life expectancy in Ireland is the fifth highest in the EU and our health service is one that continues to deliver better results for the people of Ireland, so many people feel they can keep working.

“Practically, many workers currently face a steep income drop if they retire before the state pension kicks in. This can be a very stark start to retirement. A continuity of employment right up until state pension age gives financial certainty too, which is a very important factor for most.

“This Bill, together with the wider package of pension reforms being rolled out by government, is a significant step in improving the predictability of retirement income for employees and helping to protect workers when they are approaching retirement.

“Work provides financial security; purpose, routine and social connections. This legislation is an important step in allowing workers to decide for themselves when they want to clock out for the last time,” concluded Senator Nelson Murray.