The pension age will not go up to 67 next year as planned but there is no guarantee that it will remain at 66 in the long term.
As part of a deal to form a new government Fianna Fail, Fine Gael and the Greens have agreed to defer the controversial move which will affect thousands of people approaching retirement.
This means the pension age of 66 will stay now after the leaders of the three parties agreed that this sensitive issue would be parked for now.
Leaving the pension age at 66 was a major part Fianna Fail’s election campaign and to have allowed the qualification age to increase would have been seen a climbdown by Micheal Martin’s party.
Fianna Fail finance spokesman Michael McGrath confirmed today that the pension age will not increase next year but that a commission on pensions will be established to examine the area and to make recommendations to government to ensure a future system is sustainable.
He told RTE’s Morning Ireland that progress has been made during the talks that will ensure the pension age will not rise next year.
He said: “The final details will be confirmed once the document is published but this has been an issue of considerable debate right through the election campaign, and indeed since, and it is an important issue for our party over the course of the negotiations.
”We are satisfied with the shape of what is being agreed which will ensure that the pension age is not going to increase next year.”
The State’s pension age was due to be increased to 67 next year and 68 in 2028, has been one of the key obstacles in the government formation talks.
The commission will examine a new auto-enrolment system for everyone in employment and the contributions workers will be expected to make in order to receive a State pension.
Michael McGrath added: "There will be a commission on pensions to conduct a thorough examination of the issue and to make recommendations to government.
“It will be open to government to consider those recommendations and to make further decisions to ensure that our system is sustainable, that there will be pensions there for people who are paying PRSI contributions into the future and indeed those who rely on the non contributory pension as well.
“We have to take into account the fact that there are many people who have contracts of employment that required them to retire, in some cases at the age of 65, and others in the case of 66.”
