Government accused of ‘failing’ pensioners with ’40 euro weekly shortfall’

Pensioner Vinod Bajaj said the Government is “failing” older people, claiming there is a shortfall of almost 40 euros per week in the state pension.

The 74-year-old who lives in Limerick said the Government needs to set out a clear pension plan for the years ahead.

It was confirmed that there will be a 12 euro increase in weekly social protection payment rates, including the State pension.

As part of Budget 2025, there will be a bonus double payment for recipients of long-terms social protection payments.

Mr Bajaj said: “The (Government) tried to keep everybody happy and with the surplus of money they could have made some real changes.

“Personally, they are giving me an extra 12 euro. But that will be gone through the extras I will have to pay including the electric grid improvement and an increase in the carbon tax.

“The state needs to be more transparent with how it will pay out the pension in the coming years.”

He believes the state pension should be increased by around 40 euros a week.

He said that a plan to reform pensions published in 2019 said that the contributing State Pension will be at 34% of the average industrial wage and all future increases will be linked to this.

Mr Bajaj said he was hoping to see an increase from 277 euros to 330 euros for the weekly contribution pension, to bring it to 34% of the national average wage.

“The Government promised to do it but nothing has been done,” he added.

“Many pensioners do not know about this plan. The Government has forgotten but I have not.”

He said the current state pension is about 29% of the industrial wage, which is 277 euros per week.

The average industrial wage is 967 euros per week, meaning the state pension should be around 332 euros.

“The Government has not increased the pension in line with the industrial wage, leaving a 40 euro shortfall,” he added.

He has said there is a need for a systematic review and commitment to ensure pensioners receive a fair increase.

“The Government has failed the pensioners,” he added.

“They said they were going to do it, they said they will divide the system and then make sure that all future pensions increases are linked to that one. But nothing has happened.

“The Government needs to put this right. That document is a living document.

“The 277 euro will get you by, but it does not allow any unfortunate circumstances.

“The impact on pensioners is one thing, but where is the fairness. Pensioners these days cannot say anything at all.

“I’m not any better off in taking an extra 12 euro. Everything has increased, including health insurance. Six euro of that increase will go to health insurance, six euro will go to the taxman and I will have 3 euro to buy a coffee.

“Is that how you want to treat the pensioners?

“The Government is helping lots of other people, but what are you doing for the senior citizens of this country?”