George Lawlor Urges Abolition of Mandatory Retirement Age

Minister, abolishing the mandatory retirement age in Ireland presents numerous benefits that can positively impact individuals, organisations and society as a whole. The discussion we have here on this Bill today should explore the various aspects of this issue including the economic, social and psychological implications as well as the challenges and considerations that no doubt will come with one of the more significant policy changes since the introduction of the old age pension on New Year's Day in 1909. The abolition of the mandatory retirement age is the key, giving people the choice to go at 65 or indeed work on. One of the most immediate benefits of abolishing the mandatory retirement age is the potential for increased labour force participation. As life expectancy rises and indeed health improves, many individuals are capable of working if they wish to beyond the traditional retirement age. This will help to alleviate labour shortages in various sectors, particularly in industries facing demographic challenges. Older workers often bring a wealth of experience and knowledge to their roles and by allowing them to continue working, organisations can benefit from their expertise which in turn can lead to improved productivity. Experienced employees can also mentor younger colleagues, fostering a culture of knowledge sharing that can enhance overall workplace performance. In the area of increased tax revenue, with more individuals remaining in the workplace for longer periods, there is potential of course for increased tax revenue and the associated supporting of public services and social welfare programmes which are increasingly strained and will face even greater challenges as we face into the demographic time bomb as our population ages. More workers contributing to the economy will lead to a more sustainable pension system. Abolishing the retirement age can lead to a more diverse workforce. Age diversity will foster innovation and creativity and different perspectives and experiences come together to solve problems and deal with real-time situations. Organizations that embrace a multi-generational workforce are often more resilient and adaptable to change. Many of our older individuals find purpose and fulfilment in their work. Allowing people to continue beyond the current 65 or indeed 66 if they choose or wish to will contribute to the overall wellbeing and quality of life. Work provides social interaction and a sense of identity, so often lacking and diminishing in an ever-changing Ireland. Which can be particularly important for older adults who may otherwise face social isolation. Abolishing the mandatory retirement age will help combat ageism in the workplace. By recognising the contribution of older workers, society will shift perceptions about ageing and work, fostering a more inclusive environment. This can also encourage younger generations to value the insights and experiences of their older colleagues. Removing the mandatory retirement age will empower individuals to make choices about their careers and retirement. People can decide when they are ready to retire based on their own circumstances rather than a predetermined age. This autonomy will lead to greater job satisfaction and personal fulfilment. There are of course also psychological benefits. Continued employment can provide older individuals with a sense of purpose and accomplishment. Many derive satisfaction from their work and being forced out to retire can lead to feelings of loss and disengagement. Allowing individuals to continue working will help maintain their mental health and emotional wellbeing. Older workers often engage in lifelong learning, whether through formal education or on-the-job training. This commitment to personal and professional development has been proven to enhance cognitive function and adaptability, benefiting both the individual and indeed their employers. By maintaining a diverse age range within the workforce, older employees can serve as role models for younger workers, demonstrating the value of experience, resilience and a strong work ethic. This can inspire younger generations to take their careers seriously at times and value the contributions of all age groups. While there are numerous benefits to abolishing the mandatory retirement age, there are also challenges and considerations that must be addressed. Workers may need to make adjustments to accommodate older workers, including flexible working arrangements and ergonomic improvements. Organisations that invest in creating a supportive work environment for older employees can reap the rewards of their experience. The abolition of the mandatory retirement age may require a re-evaluation of pension schemes and retirement planning. We as policy makers and indeed some of the financial institutions must work to ensure that individuals are adequately prepared for retirement, regardless of when they choose to transition out of the workforce. Organisations may need to proactively manage intergenerational dynamics to ensure a harmonious workplace and training programmes that promote collaboration and understanding between different age groups may help mitigate potential conflicts and misunderstandings. While many older individuals are capable of working, it is essential to recognise that not everyone may be fit to do so. Employers must assess the health and wellbeing of older employees and provide appropriate support to ensure that they can perform their roles effectively. The Irish Congress of Trade Unions support this bill, preferably with the upper age limit to 70 in keeping aligned with the 2018 change that gives public servants and government's own employees the option to remain in their job, if they wish, up to the age of 70. However, Congress recognises that this bill is good for private sector workers. It is important that workers get a right to keep their job, to allow the majority of private sector workers who only want to continue working for that extra year between 65 and 66 beyond their company's retirement age of 65 in order that they qualify for the state pension at 66 and to eliminate that year lacuna between 65 and 66 that is causing great difficulty for some retirees. The employers and IBEC support going to 66 because there is a growing number of applications for a right to remain until 66 and the employers do not want to have to deal with requests on a case-by-case basis. From soundings taken, this bill is hugely popular with the public, who see the legislation as a very positive move. Age Action also welcomes what they describe as long overdue legislation to address the Pensions Commission recommendation to enable private sector workers to remain employed if they wish to do so, until they reach the minimum state pension age of 66. They describe the frustration of many older people to be effectively forced into unemployment for a year prior to the state pension eligibility. They go on to say that their analysis is that the approach adopted in the bill is inconsistent with the policy goals set out in the Roadmap for Pensions Reform 2018-2023, which stated that Government is determined to alter perceptions around retirement age and support a positive ageing environment where older people are, to the greatest extent possible, encouraged and facilitated in working, if they wish to, beyond the normal retirement age. Greater flexibility around working and retirement decisions will empower older people. It will allow them to optimise their own arrangements in a way that they can improve their financial retirement readiness. It will enable our society to continue to benefit from the skills and experience of our older workers and it will help sustain the viability of the wider pension system. More broadly, Age Action recommends an end to mandatory retirement by age. Opposing an age at which all employees must retire, irrespective of their wishes and capacity, assumes that our ability to contribute to the workforce declines with age, when in fact it may indeed increase. Mandatory retirement reduces older people's opportunity to participate in society, limits autonomy, insults dignity and rejects diversity. It is a normalisation of ageism in the workplace, according to Age Action. Abolishing the mandatory retirement age in Ireland holds significant promise for enhancing economic productivity, promoting social inclusion and improving the quality of life for older individuals. By recognising the value of experience and the contribution of older workers, society can foster a more inclusive and diverse workforce that benefits everyone. However, it is essential to address the challenges and considerations that come with this policy change, by creating supportive workplace environments and ensuring adequate retirement planning, this country can embrace the potential of an ageing workforce while promoting a culture of respect and appreciation for all employees, regardless of age. The decision to abolish the mandatory retirement age can be a transformative step toward a more inclusive and dynamic labour market, benefiting individuals, organisations and Irish society as a whole. Well, I think you have to do