New research from Lockton People Solutions Ireland has revealed how workers are reacting to the overhaul of the State Pension system announced by the Irish government in September 2022.
A nationwide survey was undertaken, and when looking at feedback from Wexford workers alone, it was found that two in five (40pc) workers from the county said that the changes would only entice them to work longer if they had no other financial option, however, a further 2/5s (38pc) said that access to a larger pension payout would in fact make working longer a more attractive proposition.
While the State Pension age will remain the same at 66, the proposed changes will form the foundation of a more flexible pension age model. Taking effect in January 2024, workers will have the option to continue in their roles until the age of 70 in return for a higher State Pension. Those that do so will secure a State Pension of €315 per week, compared with the current rate of €265.30 per week.
Other nationwide highlights from Lockton’s research found that of 700 workers asked throughout the country
- Less than one in four (23pc) would be encouraged to work longer as a direct result of the measures.
- Nearly a third (30pc) of workers surveyed stated that the changes would only entice them to work longer if they were unable to afford to retire at the current State Pension age of 66.
- One in ten (10pc) unequivocally said that the Government’s promised increase is not enough money to entice them to work for longer.
- Women less inclined than men to work for longer. About one in five (19pc) women said that a higher State pension would entice them to work for longer compared to one in four (26pc) men.
- Singletons were significantly more likely to be attracted by the measures, with a third (33pc) saying they would work longer to secure a better pension, compared to just 15pc of married workers and 17pc of those who are divorced, separated or widowed.
