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| Pension age to rise by three years |
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Everyone under the age of 50 will now have to work an extra three years before retiring, the Government has announced.
In an overhaul of the State pension, qualification ages will increase in phases over the coming years from 65 up to 68 years of age in 2028.
Social Affairs Minister Mary Hanafin insisted the move was necessary because people were living longer and healthier lives.
"It is simply not sustainable that we can afford a pension system based on the current model which allows people to spend almost as long in retirement as they do in the workforce."
Under the plans, the State pension age will rise to 66 in 2014, to 67 in 2021 and finally to 68 in 18 years time.
This means that anyone currently 49 years or younger will not reach official retirement age for three years longer than expected under the present scheme.
The Government is also bringing in a new supplementary publicly-run pension scheme for workers who are not covered by a private work pension.
Anyone aged over 22 years will be automatically enrolled and will pay extra contributions through their PRSI, which will be matched by their employer and the State.
Aimed at younger people who have not signed up for a private savings pension scheme, workers will be able to opt out of the payments at any time - but will be automatically re-enrolled every two years and will not be able to withdraw their savings before retirement.
Employees will have to pay 4% of their wages - within yet-to-be-decided upper and lower thresholds. The Government will then contribute two euro and the employer two euro for every four euro saved by the worker.
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