Retiring at 75 'anathema' to society - Age Action

Forcing people to work into their seventies is "anathema" to civilised social policy, a support group for the elderly claimed today.

Age Action Ireland said although the traditional retirement age of 65 is "daft and outdated, great care should be exercised in extending that age".

Responding to suggestions that the retirement age should be raised to 75 to deal with the impending pensions crisis, the group said "retirement dates should, subject to some parameters, be a matter of choice".

"There should be a 'decade of retirement' allowing choice, depending on health, income and ability," it said.

Yesterday a report by the Society of Actuaries in Ireland claimed raising the retirement age to 75 would be the most effective way of avoiding a pensions crisis.

The study said falling birth rates and increasing life expectancy meant that dramatic changes would have to be made by 2050.

By then there will be just two working people for every pensioner, compared to six at the moment, it estimated.

Spokesman for the society Mr David Harney said: "We were quite surprised by the increases in the retirement age that would be needed to have a meaningful impact." He said the changes suggested by the group could be implemented gradually over the next 50 years.

"The number of pensioners is going to increase from just over 400,000 at the moment to over 1.25 million in 2050," he said.

"Over that period of time there is going to be a meaningful increase in the number of pensioners but the number of people in the working population is going to stay consistent at 2.6 million."

Mr Harney said the cost of paying state pensions was about 3 per cent of GDP but would rise to 8 per cent of GDP in 2050.

The most realistic option was to raise the retirement age to 75. The only alternatives were increasing the country's productivity or reducing the amount paid to pensioners.

If the shortfall was to be funded by income tax, it would mean raising the tax by 15 per cent.

Addtional reporting by PA