The government has been urged to make it easier for older people to keep working after retirement age or risk facing a social welfare timebomb.

Ireland's ageing population poses long-term dangers for the country's economy, a labour conference heard yesterday.

Economists said that by 2036 over 40pc of the Irish workforce will be aged over 50, with many skilled workers retiring. Delegates at the Active Ageing and Labour Market Trajectories seminar in Dublin heard from a number of international experts on pensions issues and the need to root-out ageist discrimination in the workforce if Ireland's economy was to continue to flourish.

"Failure to retain fit and healthy older workers in the labour force means that, on an individual level, people can fail to realise their full potential and may suffer financial hardship," said Prof Brendan Whelan, research director of the Irish Longitudinal Study on Ageing (TILDA).

Dangers

Economic and Social Research Institute (ESRI) figures show the current ratio of about four working people for every one person over 65 years will fall to 2.5 within 20 years and to 1.5 by mid-century.

"We cannot assume that immigrant workers will automatically make up the labour shortfall.

"Society has to end its prejudice against older people continuing to work beyond retirement age - if they wish to do so."

However, Mary Daly, head of legal and regulatory affairs at employers group IBEC, said it was imperative to have choice for both the employer and employee.

"There are some instances where employers would be happy to keep people on past the age of 65," said Ms Daly.

"But there are other sectors where employers just wouldn't want to keep people past the age of 65 so it is not a clear-cut issue."

More Information on World Pension Issues

More Information on Social Pension Issues