purchasing prsi credits

cjmc11

Hi everyone
I'm thinking of taking a year or 2 out to go travelling.
I'm just wondering would I be able to purchase prsi credits to bridge the gap so that it wont effect my pension entitlements
Age 25, been working since 17/18, been out of work a couple of times for short durations but kept stamps linked.
Thanks

wokingvoter

cjmc11 wrote: »

Hi everyone
I'm thinking of taking a year or 2 out to go travelling.
I'm just wondering would I be able to purchase prsi credits to bridge the gap so that it wont effect my pension entitlements
Age 25, been working since 17/18, been out of work a couple of times for short durations but kept stamps linked.
Thanks

No that won't be possible

cjmc11

wokingvoter wrote: »

No that won't be possible

Cheers for the reply,
Just out of interest will a gap of say 2 years make much of a difference to my pension by the time I'm retirement age?
Assuming there would be no gaps after that.
I know this is all hypothetical and its not going to be a deciding factor in me going or not anyways, and by the time I retire the whole system could have changed at any rate but its just something i'm thinking about.

Kristopherus

wokingvoter wrote: »

No that won't be possible

Can the OP not make voluntary contributions?

cjmc11

Kristopherus wrote: »

Can the OP not make voluntary contributions?

There the words I was trying to think of, voluntary contributions, thanks!

esforum

cjmc11 wrote: »

Cheers for the reply,
Just out of interest will a gap of say 2 years make much of a difference to my pension by the time I'm retirement age?
Assuming there would be no gaps after that.
I know this is all hypothetical and its not going to be a deciding factor in me going or not anyways, and by the time I retire the whole system could have changed at any rate but its just something i'm thinking about.

state pension? No, wont make a difference at all.

Private pension? You may have to add the 2 years on, would depend on the pension scheme but as you are working since 18, probable not.

allthedoyles

Fair play to you for thinking so far ahead .
As you may know the retirement age is been increased to 68 in 2028.
a break of 2 years may not make much difference to you as now at age 25 you intend to have paid contributions from age 28 to 68.

To qualify you will need to have 10 years PRSI contributions and for that you will get only a 1/3rd of the state pension.

For each additional year of contributions, you will earn 1/30th of the State pension, up to a maximum of 30 years’ contribution.
So, if you’ve paid contributions over 30 years, you’ll get your €230 a week.

if you only made contributions over 15 years, you’ll only be entitled to half of that, or €115 a week

dev100

There's 2 state pensions ...

Maybe I'm wrong on this my belief is there's the contributory state pension and the non contributory state pension . Basically if you don't work you go on the non contributory pension. There's not a massive amount of diff between the two.

Op by the time you think you can retire I reckon there won't be any pension only what you have saved and there won't be a retirement age either ...

loyatemu

On a related note, if you quit work to become a housewife/stay at home mum, you continue to get credits towards the contributory pension as long as you are receiving child benefit (up to a max of 20 years) - you don't have to apply for this either. Stay at home dads may have a problem though, as AFAIK child benefit has to be paid to the mother.

loyatemu

dev100 wrote: »

There's 2 state pensions ...

Maybe I'm wrong on this my belief is there's the contributory state pension and the non contributory state pension . Basically if you don't work you go on the non contributory pension. There's not a massive amount of diff between the two.

the non-contributory is means tested I think.

cjmc11

allthedoyles wrote: »

Fair play to you for thinking so far ahead .
As you may know the retirement age is been increased to 68 in 2028.
a break of 2 years may not make much difference to you as now at age 25 you intend to have paid contributions from age 28 to 68.

To qualify you will need to have 10 years PRSI contributions and for that you will get only a 1/3rd of the state pension.

For each additional year of contributions, you will earn 1/30th of the State pension, up to a maximum of 30 years’ contribution.
So, if you’ve paid contributions over 30 years, you’ll get your €230 a week.

if you only made contributions over 15 years, you’ll only be entitled to half of that, or €115 a week

Ya well its just a plan at the moment to go travel, nothing written in stone as of yet.
So I take it if there's a gap the years before the gap will count for nothing, or am I looking at it all wrong?(seems completely stupid if that's the way)
Ya sure I know this pension craic may be all ancient history by the time I'm that age, but I'm just goin by what the system is now.

popa smurf

allthedoyles wrote: »

Fair play to you for thinking so far ahead .
As you may know the retirement age is been increased to 68 in 2028.
a break of 2 years may not make much difference to you as now at age 25 you intend to have paid contributions from age 28 to 68.

To qualify you will need to have 10 years PRSI contributions and for that you will get only a 1/3rd of the state pension.

For each additional year of contributions, you will earn 1/30th of the State pension, up to a maximum of 30 years’ contribution.
So, if you’ve paid contributions over 30 years, you’ll get your €230 a week.

if you only made contributions over 15 years, you’ll only be entitled to half of that, or €115 a week

Intresting what about if you take time out to look after your kids. Or do they care, can you find out how many contributions you have, I must get back to work soon

allthedoyles

If you are gonna have 40 years paid contributions @ 52 weeks per year from age 28-68 then you will have no worries , the gap now wont matter.

the qualification is based on total number of paid contributions , not consecutive years

allthedoyles

popa smurf wrote: »

Intresting what about if you take time out to look after your kids. Or do they care, can you find out how many contributions you have, I must get back to work soon

you can find out and you can do this online - here is the online form :

https://www.welfare.ie/en/pages/secure/RequestSIContributionRecord.aspx

cjmc11

allthedoyles wrote: »

If you are gonna have 40 years paid contributions @ 52 weeks per year from age 28-68 then you will have no worries , the gap now wont matter.

the qualification is based on total number of paid contributions , not consecutive years

Ok cheers for that,
Another question, I will also be paying a class s contribution from this year on (farmer, self employed), if/when I go travelling, I plan to keep the farming business going, its only a small farm and I'll be able to get someone to run it for me, I'll still technical be running it, making decisions, paying from my own business account etc., but obviously remotely, could the class s contribution make up the gap?
Thanks

cjmc11

Anyone shed any light on th question above?
Thanks

Car99

allthedoyles wrote: »

Fair play to you for thinking so far ahead .
As you may know the retirement age is been increased to 68 in 2028.
a break of 2 years may not make much difference to you as now at age 25 you intend to have paid contributions from age 28 to 68.

To qualify you will need to have 10 years PRSI contributions and for that you will get only a 1/3rd of the state pension.

For each additional year of contributions, you will earn 1/30th of the State pension, up to a maximum of 30 years’ contribution.
So, if you’ve paid contributions over 30 years, you’ll get your €230 a week.

if you only made contributions over 15 years, you’ll only be entitled to half of that, or €115 a week

What about non contributary pension ? As far as I know that's over €200 whereas contributay is €230 not a great deal in difference really

mp22

http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/social_insurance_prsi/class_S_prsi.html

cjmc11

Thanks ya I've read that on citizens info website, doesn't really say if they can be used though, I presume they can though for the purposes of contributions towards the contributary pension.

Also I see that its proposed to abolish the average contributions rule from when a person started to pay prsi to when they retire and replace it with a 30 year rule, whereby a person just has to have 30 years worth of contributions built up when they reach retirement, is this just a proposal at present, and if so how likely is it to be brought in?, seems a more fairer system anyways than the average rule, which from what I can see would just penalise people for taking breaks from employment i.e. Travel, back to college etc.