Active Retirement Ireland, the country’s largest membership organisation for older people, says today’s Budget announcement has delivered little in the way of meaningful provision and security for older people in Ireland.
The charity says it is frustrated that the government has again dismissed calls from across the sector for a secure and adequate state pension, announcing only a €12 weekly increase with no proposal to benchmark or triple-lock the payment against wages and inflation.
Active Retirement Ireland CEO Maureen Kavanagh said: “Any increase to the pension is welcome. Every little bit helps and older people will be grateful, but the announcement of an additional €12 on the state pension is very disappointing. It feels like the absolute bare minimum from the government — this is an increase of just over 4% for older people living on the pension and will do little to ease financial stress.
“This token increase brings the pension to just 30% of average earnings, even lower in terms of real value than it was in 2021 when it was at 32%. Everything is going up and the pension just isn’t keeping pace. In 2018 the government recommended basic pension adequacy as 34% of average earnings. Year after year this has not been achieved and even with the €12 increase in Budget 2025 we are still €40 a week short of this.
“The announcement of lump sum payments to recipients of the Fuel Allowance, Living Alone allowance and other income supports in Budget 2025 is welcomed and will make a big difference to many older people, but these are one-off and not guaranteed beyond this Budget.
“What we have seen again today is that there is no plan from government for the state pension and income support for older people. It is just random amounts each year, entirely at the mercy of changing political priorities and older people have had enough.
“Ireland is the only country in the Eurozone with a state pension not indexed against wages or inflation, which means older people living on the pension in Ireland are the only older people in the Eurozone who have to wait for an annual Budget announcement to find out what their income will be.
“They deserve a secure, fair and adequate income and to have their contributions to our society and economy recognised, valued and respected.
“We have a new government term starting in possibly the next few months, and the government has this opportunity set a path for the next five years toward achieving an adequate pension rate, benchmarked at 34% of average earnings and triple-locked to ensure it does not continue to fall against inflation and wage growth and give older people in Ireland far greater income security.”
