The government’s economic policy advisor CPB has joined the council of state in criticising the cabinet’s timetable for increasing the age for state pensions from 65 to 67.

The cabinet has said it will raise the pension age to 66 in 2020 and to 67 five years later. But in its analysis published on Friday, the CPB says it would make more sense to take a ‘meaningful step’ in raising the pension age in 2015 to prevent a new cabinet from going back on the decision.
The CPB also says that proposals to exempt workers with heavy physical jobs will have a ‘negative effect’ on cost-cutting although in principle it agreed with the cabinet that the measure will cut government spending by €4bn.
Raising the age at which people are eligible for state pensions will hit those on low incomes the hardest because it represents a relatively high percentage of their total income, says the CPB report.
On the other hand, plans to tighten up tax-friendly private pension saving schemes will mainly hit those with higher incomes, the CPB says.