The Government has been slammed as 30,000 people turning 65 this year may have to claim the dole for two years.
Those who hit the landmark age after January 1 won’t be eligible for the State Pension until 2022 – as the age of eligibility increases from 66 to 67 next year.
Irish Association of Pension Funds chief executive Jerry Moriarty slammed the move.
He added: “The fact our Government expects the 30,000 people who will turn 65 in 2020 to sign up for job seekers allowance for two years is nothing short of an insult.
“A group, who will have contributed to the Irish tax take and the economy for more than 40 years should not have to face this prospect.
“There is still time to rectify matters. Firstly, we would ask that the Government look into how they might introduce the payment of a reduced pension for retirees who need or want to retire before the new State Pension Age.
“We are also advocating for some form of staged phasing in of the changes, to avoid the cliff edge, and to ensure that these pensioners do not lose out on a full year’s pension.”
The IAPF argues the pension changes do not make any allowance for people who have to retire as they can no longer do manual work.
It also claims they will have a disproportionate impact on poorer people their mortality rates are higher and they receive even less in total State pension payments.
Mr Moriarty added: “With an ageing population, we will have to ensure the State pension is sustainable in the long term.
“This will involve a combination of additional saving for their retirement, additional Government expenditure on pensions and more people working longer.
“If we want people to work longer, we must approach this with flexibility and compassion.
“It has to be remembered that not everyone in their mid to late 60s is in a position to work for longer.
“With a year until the next increase in State Pension age, there is time to address these issues.”
