From January 2024, Employees who have enough qualifying PRSI contributions may:

✅ Continue to claim the State contributory pension on reaching the age of 66 in the usual way, or
✅ Exercise a new option to defer drawdown of the State contributory pension until any age between 67 and 70.

Employees who choose a drawdown date between the ages of 67 and 70 may be entitled to an actuarially increased rate of payment.

This reform of the State pension model is likely to lead to an increase in requests from workers in the relevant age bracket to continue working beyond contractual retirement ages.

Organisations should ensure that they are prepared to deal with these requests, follow the guidance in the WRC’s Code of Practice on Longer Working and carefully consider the potential consequences of departing from an established policy on enforcing a mandatory retirement age.

For further information on how this development impacts your Organisation’s employment law compliance, there is an in-depth Retirement and Pensions Section available on Linea that includes a Toolkit, Templates, Checklists, FAQs and a Sample Retirement Policy.

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