Reforms in State pensions are set to continue next year as it is becoming clearer that pensioners are among the most vulnerable categories of society and are at risk of poverty.
To address such realities, the government will be introducing changes to the national minimum pensions to boost the earnings of those living on the lowest level of pensions.
Come January, the national minimum pension will rise to €7,280 a year, or €140 a week. This means that those over 75 and currently on the minimum pension will see their weekly income rise by €8.92 a week. The pension of those under 75 will rise by €8 a week.
About 12,000 pensioners are expected to have a higher pension.
Those who did not have enough contributions when they started receiving a pension will get a pro-rata increase.
Married couples who receive one pension will also have an increase if they only receive the minimum. As a result of the Budget, their pension will increase by €4.15 a week over and above the cost of living adjustment.
It is estimated that an additional 12,000 pensioners will get this increase.
The Budget did not bring good news for employees under 47 years.
Until now, these had to have 40 years of NI contributions to qualify for a pension. As from next year, this period will be extended by 12 months.
More incentives will be introduced to stimulate more workers to remain in employment.
Private sector employees who decide to continue working after reaching pensionable age will get a percentage increase in their pension for every year they decided to work without receiving a pension. They will be able to enjoy such increase for all their pensionable life once they stop working. This scheme will only be available in agreement with the employer.
Other announced reforms include the granting of a pension from the first day a person stops working, rather than from the following month, while the €300 extra pension top-up a year will continue to be given to those over 75.
In order to continue to address certain anomalies, particularly where it comes to those receiving service pensions, a €200 increase has been announced.