People who retire at 65 will no longer have to sign on to receive social welfare supports in the year before qualifying for the state pension.
On Monday, Social Protection Minister Heather Humphreys announced a new “Benefit Payment for 65-year-olds”.
It will apply to people aged between 65 and 66 “who cease employment, whether voluntarily or otherwise”.
It means they will no longer have to sign on, or be genuinely seeking work, in order to receive the benefits, as was previously the case.
Minister @HHumphreysFG announces New Benefit for people aged between 65 and 66
The quickest and easiest way to apply for the new payment is via https://t.co/M2y3fHlEv2
Read more details here: https://t.co/QYIjy7ZxCw pic.twitter.com/WwS4rDJRCnAdvertisement— Department of Social Protection (@welfare_ie) February 8, 2021
However, they will receive the equivalent of the Jobseekers’ Payment of €203 a week, some €45 less than the state pension rate of €248.
Ms Humphreys told RTÉ’s News at One: “What I’ve announced today is a new benefit payment for 65-year-olds who have to retire.
“They get a payment of €203 per week for 12 months. They don’t have to sign on. They don’t have to be actively looking for another job.”
She added: “We had promised in the programme for government to bring this forward, and I’m delighted that I’m doing so today.”
The measure has been criticised by Sinn Féin, who said people deserve to retire at 65 with the full amount of the state pension.
TD Louise O’Reilly, the party spokesman on workers’ rights, said: “This isn’t what people want.
All workers should have the right to retire with a State Pension at 65, if they so choose.
The government's repackaging of the dole for 65 year olds - in an attempt to pass it off as a State Pension - is an utter insult. @loreillysf
📖 - https://t.co/ZLVkrP7Z92 pic.twitter.com/u2lIamPYCd— Sinn Féin (@sinnfeinireland) February 8, 2021
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“Workers who have worked all of their life want the right to retire with access to the full entitlements of the state pension, to the full amount at the age of 65.
“This was a huge issue. In the last general election which took place a year ago today, what we heard on the doors, and what the minister has to have heard and all of the other TDs, is that people want to retire at 65.
“At the age of 65, your working life is over, and people should have the option to retire on the full state pension, not what is being offered, which is effectively jobseekers without the need to actually be job-seeking.”
Alone, the charity for older people, has given a cautious welcome to the plan, but said it falls short of what people deserve.
Chief executive Sean Moynihan said: “Alone are feeling hopeful to see some progress for plan of this payment to older people who are between two milestones in their life.
“€203 provides some form of transitional payment for those who must retire at 65, but we must stress that this is below what people who have worked their entire lives are entitled to, while also being below the poverty line.”
The poverty line for one adult is considered to be €284.46 per week.
Many workers are contractually obliged to retire at 65, without the option of working until 66, when the state pension kicks in.
The Government had planned to raise the state pension age to 67 at the start of 2021, but that decision has been deferred.
Ms Humphreys said: “What we have at the minute is not sustainable, the pension system has to be sustainable.
“The young people of today need to get the same benefits that the people who are retiring today get.”
A pensions commission, which is due to report in the summer, is being chaired by Josephine Feehily, who previously served as chairman of the Office of the Revenue Commissioners and chairman of the Policing Authority of Ireland.
