People who retire later should receive higher pension, says former Pensions Ombudsman

Vivienne Clarke

Former Pensions Ombudsman, Paul Kelly has called for a more flexible pensions system where people who retire later receive a higher pension.

People retire for a variety of reasons at different ages, he told RTÉ radio’s Morning Ireland. Some people had to retire because their contract had ended, or it was the law.

Mr Kelly suggested that the standard pension age should remain at 66, but that there should be a window of 10 years on either side of that age where if people retired earlier they would “take a hit” on their pension, while if they retired later they would receive a higher State pension.

Lockdown had changed people's attitudes to retirement, he added. Some people liked the new flexible working options and would work for longer while others wanted to spend more time with family.

Such a system could be operated “quite well” by the civil service and actuaries could work out what was sustainable, he said.