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Fresh right for workers due to retire at 65

Workers who retire at 65 under their employment contracts will have the right to remain in work for a further year under a proposal going to Cabinet today (25 March).

Minister for Enterprise Peter Burke is proposing that private-sector employees be given the option of staying on at work for another year until they reach the State pension age of 66.

The bill will effectively create a new employment right for employees whose contracts say they must retire at 65.

Additional year at work

This means an additional year at work and will mean that the contractual retirement age and the State pension age match each other.

Until now, some employees had to retire at 65, despite not getting a State pension until the following year.

The move follows Pensions Commission recommendations.

The change will primarily affect the private sector, as most public sector employees already have the option of remaining at work until 66.