Almost 400 retirees apply for new payment on first day

Almost 400 people applied for the Government’s new payment for people who retire at the age of 65 on Monday – its first day of applications.

Many companies in the private sector have a mandatory retirement age written into their employment contracts. In most cases this is 65. However, retirees do not become eligible for the State pension until age 66, a figure that is due to rise further. Until now that has left many people in financial limbo for a year.

Minister for Social Protection Heather Humphreys on Monday announced the introduction of a new benefit payment for 65-year-olds.

The new scheme means these individuals will no longer have to seek jobseeker’s benefit or sign on the live register while they wait to become eligible for the State pension.

My husband is in a nursing home under Fair Deal – would I be mad to sell our house?

---

‘Learning how to invest effectively is an important lesson’

---

Cash could be king in 2021 property market

---

Employers are saving money and should pay staff work-from-home relief

---

The payment is for people aged 65-66 who are no longer engaged in employment or self-employment. Eligibility for the payment is determined by a person’s PRSI contributions.

The rate of payment is €203 per week, which is the same rate as the jobseeker’s benefit, with an increase for dependants, if eligible.

The Minister said that some people would be “better off” financially on the new payment. This is because the new payment is paid at a flat rate so long as you have enough weekly PRSI payments to qualify.

Previously people had to claim jobseeker’s benefit for the year. Jobseeker’s benefit also requires people to have a certain number of PRSI stamps. However, it is paid at different rates – between €91.10 and €203 – depending on the weekly wage a person earned prior to applying.

Anyone earning above €300 a week qualified for the full amount, so the lower rates applied mostly to people who were working part time.

New payment

A person in receipt of the new 65-year-olds payment will not be required to be available for full-time work or genuinely seeking work and they will not be required to sign on the live register.

Recipients are exempt from participating in activation unless they choose to engage and can also participate in a course of education while retaining their full payment entitlement.

“For many people, due to their contract of employment, retiring at the age of 65 is their only option,” said Ms Humphreys. “These are people who have been working all their lives and, for many, finding new employment can be difficult.

“As Minister I want to be able to provide them with some certainty and peace of mind. That’s why I’m rolling out the benefit payment for 65-year-olds, which reflects a key commitment in the programme for government.”

Ms Humphreys said there was now “no situation” where somebody retiring at 65 would have to sign on or go on the live register.

“This is a specific payment targeted at people in the year leading up to when they reach pension age,” she said. “There are various other issues in relation to the State pension that are being examined by the independent Commission on Pensions, which is due to make recommendations to me in the summer.

"In the meantime I'm pleased to give clarity today to those aged 65 or approaching the age of 65, and I'm encouraging people to apply for this payment via MyWelfare.ie."

Aside from the online application method, individuals can email forms@welfare.ie to request a paper application, which will be posted to them.

Eligibility criteria

Applications can only be made when a person reaches 65. The payment will continue until the person reaches pension age, provided they continue to meet the eligibility conditions.

To qualify, a person cannot be working at all – either as an employee or in self-employment. Anyone who takes up casual or part-time work while in receipt of the payment is required to notify the department and discontinue their claim.

The department said it had identified people currently in receipt of jobseeker’s benefit who were eligible for the new payment and was in the process of advising them of the relaxation of conditions to their claim and of their automatic transfer to the scheme.

The State pension age emerged as a key issue at the last general election. The retirement age for the purposes of the State pension rose from 65 to 66 in 2014 and was due to rise again, to 67, in January – and then to 68 in January 2028.

Following significant political pressure, however, the Government pledged in the programme for government to keep the pension age at 66 pending the outcome within a year of the recommendations of the Commission on Pensions.