Budget 2027 - Planning now for an ageing Ireland

According to Census 2022, there were 1,048,985 people aged 60+ living in Ireland on Census night, an increase of 19.7 per cent on Census 2016. Looking ahead, CSO projections show the population aged 65+ will increase by 70 per cent by 2040; an increase of more than half a million people. These demographic trends are already in motion.  Budget 2027 must put the foundations in place to meet the needs of our ageing population.

Future Forty: A Fiscal and Economic Outlook to 2065, published by the Department of Finance, highlights how these trends will significantly impact Ireland’s economic and fiscal position over the long-term. An increasing old-age dependency ratio will increase pressures on public finances, with rising costs for pensions, healthcare, and social services. 

Meeting the needs of an ageing population will require adequate investment in incomes, services, and infrastructure. This includes supporting older people to age well at home, with access to the care and supports they need in their communities. 

Adequate income

Adequate income is essential for addressing poverty, particularly amid the ongoing cost-of-living pressures. Older people are especially vulnerable, as most rely on fixed incomes. In 2025, over 122,000 older people were living in poverty, an increase of 15 per cent compared to 2024. This number would be substantially higher were it not for the cost of living one-off measures. 

Social Justice Ireland has long advocated for the introduction of a single-rate, universal state social welfare pension at the rate of the State Pension (Contributory). The significant additional expenditure required could be funded through reform of Ireland’s system of pension-related tax reliefs, and through a moderate increase in Employer PRSI, as detailed in our report on the Universal Pension from March 2018. This would involve standard-rating the tax break on all private pension contributions. 

As an immediate step towards ensuring adequate incomes in retirement, we call on Government to increase both the State Contributory and Non-Contributory Pensions by €15 per week, starting in January 2027 at an additional cost of €570m in Budget 2027. Over the longer term, the Government should review the effectiveness of the Auto-Enrolment retirement savings scheme and support the transition towards a Universal State Pension, ensuring that all older people can enjoy an adequate income in retirement while reducing complexity and inequalities within the current system.

Support right-sizing for older renters

Numbers of households aged 65+ renting in the private sector has increased by 83 per cent since Census 2016. Consequences include rising costs and lack of agency in one’s rented home, creating obstacles to ageing well at home, such as challenges in modifying living spaces and growing financial pressures. In 2021, the CSO reported that nearly half of renters over 65 were spending more than 35 per cent of their disposable income on rent. 

At the same time, the number of people aged 65+ accessing emergency homeless accommodation in April 2026 (265) has increased by 107 per cent since the introduction of Housing for All in September 2021. This highlights the need for sustainable solutions instead of reliance on short-term fixes. 

Considering demographic change, we recommend that the Government designate 980 social housing units within 2027 proposed target of 20,000 social homes to be built according to Universal Design principles. This would facilitate people aged 65+ who live in private rented, local authority and voluntary body rented accommodation to move to homes more appropriate to their needs as they age (“right-sizing”). 

Home care

The 2025 Programme for Government commits to design a Statutory Homecare Scheme to allow people to stay in their own home for as long as possible. Building on work done to date, we recommend that €3m should be allocated to complete the development of a full statutory home support scheme, including system design, funding model, and regulation, and to include the development of capacity-building supports for the community and voluntary sector to meet revised standards in the delivery of the scheme. 

In addition, Government should also increase funding for home support services to deliver additional hours of care in line with the growing health and social care needs of older adults. To address rising demand, Budget 2027 should include an additional €75.4m for home support services. 

The Community and Voluntary sector provide a range of key supports for older people, from befriending and social inclusion supports, to home care and assistive technologies. These supports are especially critical for those living with dementia and their families. We welcome recent progress in recognising this essential work, including the move towards fair pay. To build on this, multiannual funding is essential to support effective planning and to ensure these services continue to meet both current and future needs. 

Safeguarding

Safeguarding concerns rose by 33 per cent in 2023, with 18,290 reports made to the HSE Safeguarding Teams. Of these, 31 per cent involved people aged 65+, while the number of complaints raised by people aged 80+ increased by 32 per cent compared to 2022. Reports of elder abuse exceeded 5,000, continuing an upward trend. The most prevalent types of abuse reported by older people were psychological, physical and financial. Social Justice Ireland welcomes the Law Reform Commissions framework for adult safeguarding and urges progress on the Adult Safeguarding Bill, which is urgently needed. Budget 2027 should thus allocate €3m to establish an independent safeguarding authority.

Loneliness Taskforce’s National Strategy on Loneliness

According to the European Commission's Joint Research Centre, Ireland has the highest rate of loneliness in the EU: up to 1 in 5 people in Ireland experience loneliness. Social inequalities increase risk of loneliness and its harms, and high rates are linked to poorer economic performance, reduced political participation, and erosion of social trust. Despite this, Ireland has no dedicated national policy on loneliness. 

We therefore recommend that Budget 2027 invest €1.4m to fund the proposed a National Strategy on Loneliness, developed by the Loneliness Taskforce.