You might have seen a recent article in the Irish independent about 65 year olds and the state pension but unless you’re in your sixties you probably had little reason to read it... Maybe you should.
The article focuses on the significant increase in the amount of people receiving job seeker benefit at the age of 65.
So why is this?
In 2014 the government removed the “State Transitional Pension”. This was paid to 65 year olds for one year before the full state pension started at 66. What if you are not allowed to work after age 65?
Many employees in Ireland have employment contracts that include a mandatory retirement ages which is often 65. So what can do they do for the year? The stats hint that job seeker benefit is the answer for some.
Don’t panic.
First off, it’s worth checking to see if you fall into this category. If you do, there are ways to help bridge this gap. You could start by ask your employer what their position is.
If they can’t change the contract or if you simply don’t want to work when you’re 65 a private pension could help. In some cases Private pensions can be taken as a lump sum payment which could be used to keep you going for the year. However, this option is subject to the size and type of your pension.
Talking to a pension advisor is the best way to find out what the best option for you is.