The state pension age will remain at 66 - but new rates will be introduced linking what you earn, to the age you retire.
Speaking on his visit to Japan, Taoiseach Micheál Martin says the state pension will continue to be available to people retiring at 66 - but workers could get a higher rate for working beyond that.
Cliff Taylor - the managing editor of The Irish Times - says the radical shake-up will also ban companies from forcing people into retirement.
"People will still qualify for their state pensions when they're 66. The Government is going to try make it a lot more flexible for people to work beyond that, if they decide to, by bringing in legislation in terms of contracts that employers can sign with people and ensuring they don't put pressure on people to retire before the state pension age. But the state pension age is staying at 66."
