The Government has been slammed as 30,000 people in Ireland turning 65 this year may be forced to claim the dole for two years.
Workers who turn 65 after January 1, 2020 won't be eligible for the State Pension until 2022 - as the age of eligibility will increase from 66 to 67 next year.
Those in the age bracket looking to retire may have to join the dole queues, it has been warned.
Pension representatives have said the situation is "highly concerning" that retirees may have to "pretend" they are looking for work.
Irish Association of Pension Funds CEO Jerry Moriarty said: "The fact that 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 both the Irish tax take and the Irish economy for over 40 years should not have to face this prospect after a lifetime of work."
Mr Moriarty has advised the Government to consider "two key moves" that would prevent those turning 65 this year having to wait until 2021 to receive the State Pension.
He added: "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 that these pension changes:
- Will force more people onto the Dole effectively for two years
- Do not make any allowance for people who have to retire as they can no longer do manual work
- Will have a disproportionate impact on poorer people, as the statistics show their mortality rates are higher and therefore, they receive even less in total State pension payments.
Mr Moriarty concluded: “With an ageing population it is clear that we will have to take measures to ensure the State pension is sustainable over the long-term.
"This will involve a combination of additional saving by workers for their retirement, additional Government expenditure on pensions and more people working longer.
"If we want people to consider working longer than has been traditionally the case, we must approach this massive shift in social norms 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."
