Did increasing the state pension age in Ireland affect the retirement rate of 65-year-olds? Quarterly Economic Commentary Special Article, Autumn 2017

Redmond, P. and McGuinness, S. and Kelly, E. (2017) Did increasing the state pension age in Ireland affect the retirement rate of 65-year-olds? Quarterly Economic Commentary Special Article, Autumn 2017. [Working Paper]

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Abstract

In January 2014, the qualifying age for the Irish contributory state pension increased from 65 to 66 years. Individuals born after 1 January 1949 could no longer qualify for the pension at age 65, while individuals born before this date could still qualify, provided they had the required social insurance contributions. In this paper, we examine whether this change in the qualifying age had a causal effect on the retirement rate of 65-year-olds in Ireland. To do this, we compare the retirement rates of two groups of 65-year-olds in 2014; one group was born just after the cut-off date, thereby making them ineligible for the state pension at age 65, while the other group was born just before the cut-off date, making them potentially eligible, subject to meeting the insurance contribution requirements. We do not find clear evidence that the change in the retirement age had a causal effect on the retirement rate or the employment and unemployment rates of 65-year-olds in 2014.

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