Cabinet to review changes to contracted retirement age

A significant policy shift is set to be considered by Cabinet that would allow workers with employment contracts requiring retirement at 65 to remain in their roles until the State pension age of 66. The proposal, led by Minister for Enterprise Peter Burke, aims to establish a new employment right tailored to workers whose contracts mandate retirement before they qualify for the State pension.

Under this plan, employees who wish to continue working past 65 can formally notify their employer that they do not agree to retire at that age. Employers, in turn, would be obliged to respond with a written explanation if they decide to reject the request.

Supporting Longer Careers and Pension Reform Goals

This legislative change is part of a broader initiative linked to the Government’s Pensions Commission Recommendations and Implementation Plan. The measure seeks to bridge the gap between contractual retirement and access to the State pension, supporting workers who are both willing and able to continue contributing to the workforce for an additional year.

If passed, this move would provide greater flexibility for employees approaching retirement and ensure consistency between employment contracts and pension eligibility, especially as longer working lives become increasingly common.