Returning to Ireland: Pension Inquiry

EMitch

Hi,
Sorry for a very basic question but I'm tried to read up through the forum on state pension requirements but I'm still a little unclear.

I am returning home to Ireland after 24 years away - I only worked here for probably 2 years before I left and I'm curious if it's possible to make any lump payment to try to avail of the State Pension later in life?

It's unlikely that I will work here other than part time and don't plan on claiming any benefits. I have not paid into a pension anywhere abroad so would like any advise on structuring a steady income, whether that's a combination or state or regular pension doesn't matter too much to me.
I'm in my mid-40's if that matters.
Thanks in advance...

Jim2007

I don't think you qualify, but here are the rules:
http://www.welfare.ie/en/Pages/Voluntary-Pay-Related-Social-Insurance-PRSI-Contributions.aspx

Depending on where you have lived and worked, it may be possible to have your existing contribution there taken into account in some way or other.

dennyk

What country did you work in during those years? Some countries such as the US have tax treaties with Ireland that include some sort of totalization agreement for social pensions which may allow your pension contributions in that country (e.g. Social Security tax in the US) to count towards qualifying you for the state pension in Ireland (or vice versa, if you were to retire in the other country). You'd have to research the treaty in question to see if there is such a provision and how it is applied.

EMitch

Thanks for the tip - It was the US so it sounds like I may have to have someone dig in over there and see if there's any treaty that might apply.

coylemj

OP, if you are curently in your mid-40s then you have over 20 years to build up social welfare contributions to qualify for a contributory old age pension which in your case you will not be able to draw until you are 68.

The current averaging system for calculating your entitlement will be dropped in or about 2020 and replaced by a 'total contributions' calculation, effectively number of years contributions divided by 30 so you will need 30 years contributions to claim the full pension (currently about €243 p.w.) and you will get a pro rata pension if you have less than 30 years.

So with part-time work and potentially paying social welfare contributions as a self-employed person to fill the gaps and you should be able to build up the required contributions to get most of the pension when you reach 68.

The USA is one of the countries which has a bilateral agreement with Ireland for social welfare benefits ....

http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/claiming_a_social_welfare_payment/social_insurance_contributions_from_abroad.html

Charisteas

coylemj wrote: »

The current averaging system for calculating your entitlement will be dropped in or about 2020 and replaced by a 'total contributions' calculation, effectively number of years contributions divided by 30 so you will need 30 years contributions to claim the full pension (currently about €243 p.w.) and you will get a pro rata pension if you have less than 30 years.

I've read a few press releases about this, some are saying 30 years, but some are saying 40 years.