Major changes are on the horizon for pensions, with the Social Welfare (Amendment) Bill 2023 paving the way for enhanced flexibility and revised state pension calculations. From January 2024, individuals can opt for state pension between 66 and 70, with additional PRSI contributions accepted after 66. A shift to the ‘total contributions approach’ (TCA) from 2025 aims to simplify pension calculations, acknowledging earned and credited contributions. Employers should brace for increased demand for later and phased retirements, and as auto-enrolment legislation looms, careful consideration of eligibility and exemptions becomes crucial.
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