More and more people in Ireland are choosing to work beyond the traditional retirement age of 65, a trend fueled by changes to the State pension age, improved health and evolving employment landscapes. New legislation is set to further solidify this shift, though employers and employees are awaiting detailed guidance from the Workplace Relations Commission (WRC) on its implementation.
The State pension age increased to 66 in 2014, and the option to defer receiving the pension until age 70 has encouraged many to continue working. According to figures from the Central Statistics Office (CSO), the number of over-65s in employment has dramatically increased over the past two decades. In 1998, 33,100 people over 65 were employed; by the third quarter of last year, that number had risen to 128,500. Over the same period, the participation rate of over-65s in the job market nearly doubled, from 8 percent to 15 percent. Male participation is significantly higher, at 21.5 percent, compared to 9.5 percent for women.
Whether this increase is driven by choice or necessity remains a complex question. A 2019 study by the Economic and Social Research Institute (ESRI) suggested that a shortage of pension income was a major factor driving the rise in older workers up to the mid-2010s, and this remains a concern for many. The study also noted that a significant number of those working beyond 65 are self-employed, a group often lacking adequate pension provisions. The gender pensions gap also plays a role, with a higher participation rate among single women potentially linked to lower pension levels.
The increase in older employees is also linked to changes in the public sector, where the mandatory retirement age was raised to 70 in 2018 for most employees, with some exceptions for roles like An Garda Síochána, prison officers, firefighters, and members of the Permanent Defence Force. In the private sector, there is generally no mandatory retirement age, meaning employment often relies on contractual agreements.
Currently, many workplaces navigate retirement arrangements amicably, with employers and employees reaching agreements. Dr. Laura Bambrick, head of social policy and employment affairs at the ICTU, noted that the growth in employment among those over 65 is faster than any other age group, suggesting a positive trend of increasing agreements between employees and employers. The tight labor market has also contributed, with employers facing skills shortages and demonstrating greater flexibility to retain experienced workers.
A 2024 IBEC survey found that around two-thirds of member organizations had received and approved requests from employees to work beyond 65. These arrangements typically involve fixed-term contracts specifying the purpose of the extension, such as completing a project or undertaking a specific work program. Jennifer Cashman, an employment law partner at RDJ, explained that these arrangements have allowed employers to maintain their approach to mandatory retirement ages while accommodating employees who wish to continue working.
Existing equality legislation already provides employees with the right to request to work beyond their contractual retirement age, and the Workplace Relations Commission has established a code of practice regarding these requests. While employers are not legally obligated to grant extensions, they must have “objective and legitimate grounds” for refusal, such as health and safety concerns, maintaining a balanced age structure, or facilitating opportunities for younger workers. Appeals to the WRC based on equality legislation have been increasing, and employers found in violation can face significant penalties.
The recent Employment (Contractual Retirement Ages) Bill 2025, now enacted but awaiting a ministerial order to come into effect, aims to further strengthen employee rights. The legislation will allow, but not compel, employees to remain in employment until the State Pension Age (currently 66), even if their contracts specify an earlier retirement age. Employers would need to provide “reasoned, written justification” to refuse such a request.
However, the implementation of the new legislation hinges on guidelines from the WRC, which are expected to be published in the second quarter of this year. Unions are urging a swift release of these guidelines to provide clarity for both employers and employees. Key issues to be clarified include how the new rules, focused on extending contracts to age 66, will integrate with the existing WRC process for requests to work beyond age 66.
Employment law experts have also pointed to potential discrepancies between the new legislation and a landmark Supreme Court decision – the Mallon judgement – which allowed employers to set a generalized compulsory retirement age provided they had objective reasons. The 2025 legislation, conversely, appears to require justification for retirement based on individual employee circumstances. This potential conflict could lead to legal challenges, though many employers are proactively extending contracts to age 66 or considering doing so.
As the trend of working beyond 65 continues to grow, the WRC’s forthcoming guidelines will be crucial in shaping the future of retirement and employment practices in Ireland.
