Pension
In Ireland, there is no single fixed retirement age. A person’s retirement age is designated in their contract of employment. Some employment contracts have a mandatory retirement age, but they also provide for earlier retirement generally and/or on grounds of illness. The usual retirement age in contracts of employment is 65. Many provide for early retirement starting at age 60 or, in some cases, starting at age 55.
There are two types of pensions: contributory and non-contributory. The State Pension (Contributory; SPC) is a social insurance-based payment presently payable to people starting at age 66, and the mandatory retirement age is 70. It is a basic flat-rate benefit to retirees who meet the contribution conditions and is not a means-tested benefit. The amount of benefits depends on the number of contributions, number of dependents, and age of the employee when accessing their retirement savings. Individuals who do not qualify for a contributory State pension, with income below a certain level, may be entitled to a non-contributory State pension (SPNC). It is a means-tested benefit for individuals who have not contributed at all or have not contributed a sufficient amount. The rate of payment depends on the outcome of the means test.
Ireland's Department of Social Protection will begin implementing an automatic enrollment retirement savings system. The pension program will be implemented by 2023 and operational by 2024. Employees aged 23 through 60 who earn a minimum of EURO 20,000 and are not participating in a pension plan will be auto-enrolled.
Employees and employers will each contribute 1.5% to fund the individual accounts, and employers are limited to contribute to the first EUR 80,000. Contribution rates will increase by 1.5 every three years until they reach 6% by 2034, and the government will match 33% of an employee's contribution on annual earnings up to EUR 80,000.
Dependents/Survivors Benefits
In Ireland, survivors of a deceased person are entitled to the following types of benefits, depending on their insurance condition:
- Contributory Widow's, Widower's or Surviving Civil Partner's Pension - Benefits depend on the number of contributions made
- Non-Contributory Widow's, Widower's or Surviving Civil Partner's Pension - Means test benefits based on cash income, the value of capital, and income from property personally used
- Guardian and Orphan Payments - Benefits for children under 18 or 22 years of age whose parents have died
- Death Benefit due to occupational injury - If a person dies in a work-related accident or disease, his or her surviving spouse/partner or dependent child can be eligible for Death Benefit
Invalidity Benefits
In Ireland, the State provides benefits for insured persons who have been injured or incapacitated by an accident, whether in the workplace or while traveling directly to or from work. The Occupational Injuries Scheme also covers employees who have contracted a work-related disease. The following benefits are available under this scheme:
- Injury Benefit
- Disablement Benefit
- Incapacity Supplement
- Constant Attendance Allowance
- Medical Care Scheme
Disability Allowance is a weekly allowance paid to people above 16 years of age with a disability.