Pension at 70.

realdanbreen

So there is a proposal apparently to increase the state pension to €315 provided one keeps working until they are 70 years old. What happens if you are currently getting the pension but are also working? Will you get €315 when you hit 70?

phormium

Unlikely I would think as I presume a person of pensionable age now is already drawing theirs as well as working, in the new system you wouldn't actually be drawing it at all until 70 so would have saved the state 4 yrs pension payments at that stage.

893bet

https://www.boards.ie/discussion/comment/119640251#Comment_119640251

And contributed tax for that 4 years.

I think it’s a progressive idea. Wont suit everyone of course.

Masala

ME….I getting out at 66!!! Already past the big 60 number and finding the body and mind slowing down….

phormium

https://www.boards.ie/discussion/comment/119640270#Comment_119640270

Be very job dependent, the average manual worker won't be doing it I imagine although I had a plasterer do a job lately and I'd say he wasn't far off 70! The old manual work is great for keeping you fitter maybe provided it's not too hard, the builder on site was 66 and flying around the place like a young lad, I know cos he told me he would be drawing his pension that summer.

It's a good idea though because many jobs could be continued on and many people want to as well, the key of course is doing away with the mandatory retirement age, that's what kicked a lot of people out who didn't want to go.

realdanbreen

https://www.boards.ie/discussion/comment/119640256#Comment_119640256

That's my point. If you are still working you are paying paye,prsi,usc, so why should your pension be the same as the guy who stops at 66?

Everyone will just sign on dole/yellow slips at 65 be "actively seeking work" and then take the higher payment at 70

Poorly taught out virtue signalling imo

DLink

I'm out the gap at 66, earlier if possible.

I was very annoyed when they increased the compulsory retirement age from 65, but if this news means they stop messing around with the retirement age and leave it at 66, then I'll be happy enough with that.

I'd much rather spend my time (at a minimum) sitting at home picking my hole getting my tax back via the pension, or if money allows, taking cheap flights to get away from this place, maybe even move to somewhere cheap and sunny for a few months of the year.

There's no way I'll stay working to 70, all the while dreaming of the travel I'd like to do, only for me to die or for my knees to give out the day after I retire, gotta do the travel while you're still lucid & mobile.

All of the above options are preferable to staying at work, helping to make someone else richer.

https://www.boards.ie/discussion/comment/119640661#Comment_119640661

You wont get unemployment benefit at 66. If you need at state payment you'll get the state pension at 66.

From an employer's POV it's a tricky one. From a productivity pov people will start slowing down and produce less, but will still need to be kept on (unless the employer can make a case around a number of areas such as succession planning).

From a society point of its hard to see the impact that it WILL have. White collar workers will be able to make a far stronger case to be kept in employment (not as physically demanding). But more physically demanding roles will be less conducive to working to 70. Will this create a larger inequality gap, wealthwise?

https://www.boards.ie/discussion/comment/119640743#Comment_119640743

If someone gets sick/let go at 66 and wants to continue to work/seek work

What then do they get,as someone in above position on paper at least aspires to work until 70??

,seems grossly unfair to me to then deny them the higher rate due to circumstances outside of their control.....hard to argue against case that,whole thing is predesigned to fail into creating more wealth inequality

Wanderer78

should be increased for everyone, most of the money would be spent straight into the economy....

DLink

https://www.boards.ie/discussion/comment/119640661#Comment_119640661

Thanks for the tip, I never thought of that 🙂

Shauna677

It be good for people who are physically fit and healthy and also for prople who may not have enough prsi contributions for full pension at 66. They are given few more years to catch up also there would be many people with good priivate pension they can live off of until they reach 70.

bucketybuck

If I reach retirement age I fully expect to get exactly the same as the state has given me my entire life.

Sweet **** all.

Until then I guess I'll just have to keep paying that higher tax rate while still paying privately for whatever I need, because thats how it works in this country. No free houses for the likes of us.

Shauna677

https://www.boards.ie/discussion/comment/119640765#Comment_119640765

If someone gets sick at 66 and it looks likely to be long term then they simple will not be able to work full stop.

Gusser09

I'll be out when I'm 60 at the oldest. I'll have worked for 45 years at that stage. Life is for living. I won't be able to draw down my Public Service Pension until I'm 65 and I'll get the SCP when I'm 66. I'll have a gratuity payment though and a decent AVC chunk to keep me going until then. I might even get a bit of part time work doing little to nothing for cash in hand. I'll downsize the house also to free up another 200k or so.

I hate work as it is. Not really the work I do or people I work with but the routine. The need to be somewhere on given dates and fixed times etc. I'd much prefer to get 15 years on my own terms than working until 70 living until 85 and not being able to travel as freely etc.

realdanbreen

https://www.boards.ie/discussion/comment/119640661#Comment_119640661

? I mean how would that even work?

https://www.boards.ie/discussion/comment/119640843#Comment_119640843

Glad I'm not the only one, all this talk about working until 70, my mother died in her 50s, my father, in a physically demanding job worked until his early 60s, was worn out by the time he packed it in

Dodge

https://www.boards.ie/discussion/comment/119640833#Comment_119640833

Literally can’t have a thread on boards without someone using the phrase “free houses”.

Geuze

https://www.boards.ie/discussion/comment/119640843#Comment_119640843

Why can't you get the PS pension when you retire at 60?

Knine

Finally though Carers who cannot work may get recognised & it took them long enough.

realdanbreen

https://www.boards.ie/discussion/comment/119641183#Comment_119641183

Or "virtue signalling " and of course the "carers"!

The Mighty Quinn

Listening to the way some people talk about this, you'd worry for them.

Convinced they're going to retire at 55 or 60 and spend 20+ years travelling and living the high life. Then these same people will tell you that they haven't started their pensions yet because of the cost of living, and shur it's too expensive, and who has the money for a pension.

They're 40 or more and convinced that it'll all come together in the 10 years before retirement, they'll save enough to have a champagne lifestyle in spite of the fact that the 20 odd years they've already spent working hasn't left them with much of a 'pot', and more likely to be paying off car loans and holiday loans and bathroom loans.

Many many many people will be working until 70 whether they want to or not.

It’s not a gamble I’d take TBH - you could probably pick up some cash work that would get you the extra payment in the meantime - and extra moneys just not worth 5 years of wait- for some maybe but if you’re totally dependent on the state pension come retirement you’d better start saving the cents and pennies now coz either way you’re feiced

Gusser09

https://www.boards.ie/discussion/comment/119641193#Comment_119641193

I came in post April 2004. If I'd have been in 2 months earlier I'd have qualified for that package. Regardless of years served I won't get pension until I'm 65. But I also qualify for the contributory pension too.

AVC's lads. That's the tax efficient way to beat this.

DLink

https://www.boards.ie/discussion/comment/119641634#Comment_119641634

Some of us will have our mortgages paid by 60, and have no loans to clear.

I will admit that my pension pot isn't big, but I'm retiring as soon as possible. Like I said earlier, I'd rather sit at home and pick my hole while getting my tax back via the pension, than keep working to make someone else richer.

If I can travel when retired, that'll be a bonus, but I'll be just as happy to sit at home and have the state pay me for the privilege of sitting at home. Once I'm getting money and not having to set an alarm for work, I'll be happy.

Gusser09

https://www.boards.ie/discussion/comment/119641634#Comment_119641634

That's very negative although I'd agree to and extent. I'll be paying into my AVC 25 years by the time I hit 60. The amount of people I know who work in the construction sector or gig economy that have no pension provisions made is alarming. They all seem to be flush with cash though which is the surprise. I think we need much better education about pensions in school.

https://www.boards.ie/discussion/comment/119640833#Comment_119640833

Congrats on having got through life without ever having to avail of any of the services provided by the State! It's a shame that you missed out on our excellent primary, secondary and third-level education services, but congrats are due to your parents for home-schooling you.

And it's hardly the State's fault that you failed to avail of the free Covid vaccinations that it so kindly provided.

The Mighty Quinn

https://www.boards.ie/discussion/comment/119641732#Comment_119641732

Yeah, I said you'd worry for some, not all! You sound like you've the wheels in motion for a retirement at a decent age. Hopefully I will too. I'm working on it. Putting away money now for 30 years time is really tough sometimes, yet I grind on, like I have for the last 6 or 7 years since starting a private pension.

bucketybuck

https://www.boards.ie/discussion/comment/119641764#Comment_119641764

Imagine deciding to type all that out and hit submit, I mean, you can't possibly have thought it served any purpose?

tinytobe

https://www.boards.ie/discussion/2058264154/pension-at-70

I'd gladly work until age 75, provided I am still healthy, that somebody is willing to hire me, not blacklist me, and treat me halfway fairly.

Sadly, I doubt that that's going to be the case.

Also, sadly, that a lot probably feel the same way.

DLink

https://www.boards.ie/discussion/comment/119641778#Comment_119641778

I wouldn't say I'll get to retire at a decent age, but I'll be ready by 65 or 66, hopefully a little bit sooner.

I missed a few years of pension payments in my early years of working, trying to catch up now, but I'm also trying to balance putting money into a pension I might not get, and enjoying the money now.

I've heard too many stories of people retiring and having serious health conditions almost as soon as they retire.... Would rather enjoy some of the money now while the knees still work!

Gusser09

https://www.boards.ie/discussion/comment/119641228#Comment_119641228

Great to see and they should be getting the full contributory pension when they hit 66. Shocking to think of the way they have been treated over the years.

https://www.boards.ie/discussion/comment/119641898#Comment_119641898

The Mother-in-law (age >80) got a pair of new knees from the HSE a few years ago and she reckons that they're much better than the original ones were!

DLink

https://www.boards.ie/discussion/comment/119641955#Comment_119641955

Good to know 🤣🤣🤣

Gusser09

Auto enrollment will help a lot here too lads. I actually that the govt should be taking a lot more than they are starting out with but no doubt that will grow.

The Mighty Quinn

https://www.boards.ie/discussion/comment/119641988#Comment_119641988

I'd be in total agreement. This is the way to go. If you start work at 16 and pay 1-3% towards a pension, well it's not even going to be missed, let your contributions accumulate and work for you over a lifetime. But even if it's started in earnest today it'll be 40 years before we see any benefit, but it needs to start.

Quin_Dub

The vast majority of people won't live long enough to see the benefit of it to be honest - In terms of getting more money out from the Pension overall

Average lifespan for Ireland is ~82 years old.

If you live to the average lifespan, then the increases in the pension for the extra 5 years of working won't result in you getting more money from the Pension overall.

Retire @65 and get €253 a week ,by 82 you'll have been given €223,652 in total pension payments.

Retire @70 and get €315 a week and by 82 you'll have been paid €196,560 in total pension payments.

So a saving to the State pension fund of ~€27k per person that does this , along with whatever additional PAYE/PRSI contributions they make over the 5 years.

If you want to keep working and you are healthy enough to do so then work away, but this isn't a money maker for the person - it saves money for the State simple as that.

mikeym

I wouldn’t be surprised if there’s no pension money in the pot when I get to 68.

bladespin

Make the extra five years tax free and I'd become very interested otherwise no chance.

Shauna677

https://www.boards.ie/discussion/comment/119642068#Comment_119642068

Thats why they are introducing it 🙂

DLink

https://www.boards.ie/discussion/comment/119642068#Comment_119642068

Thanks for putting a total figure on the new plan.

My old man was dead in his mid sixties, my mother was banjaxed by the same age, and dementia runs in the family... I'd much rather retire earlier than take my chances working to 70.

Quin_Dub

https://www.boards.ie/discussion/comment/119642127#Comment_119642127

Oh I'm well aware , but people need to think about the overall pros and cons of it when making a decision on whether to do this.

If you have a family history where your parents/grandparents all lived into their 90's or whatever and you expect to be generally fit and healthy into your late 60's then it's probably a good deal.

But "hanging in there" on the promise of an extra ~€60 week @70 years old probably isn't the right call for most people.

Gusser09

I think the over-riding theme coming from this thread is to get an AVC or some alternative setup. There is only so long they will push out raising the pension age. The predicted recession next year would be a good time for them to sneak another year onto it.

https://www.boards.ie/discussion/comment/119642068#Comment_119642068

Not much point in retiring at 65 when you won't get the State OAP until you're 66!

Gusser09

https://www.boards.ie/discussion/comment/119642172#Comment_119642172

JSA until then. Plenty do it.

SuperBowserWorld

I dunno.

Think a lot of pension gains in the past 15 years were due to cheap energy and stock market speculation on tech stocks. It was a huge honeymoon phase. Anything could happen to reduce your pension savings drastically.

Green energy, AI, EVs, VR, ...could see this continuing but the world seems in a very unsure, nationalistic, warmongering phase at the moment.

Also, It's obscene that some people can avail of defined benefit pensions when the majority can't. Also, when said pension funds blow up the taxpayer covers the loss. Didn't this happen with AIB pension funds a while back ?

Anyway ...was thinking of taking a break from work and live a little before going back to the grindstone. But the job market is looking very unsure at the moment.

I know that companies that wax lyrical about diversity and inclusion won't even consider people over a certain age.

Anyway, rant over 😝

Quin_Dub

https://www.boards.ie/discussion/comment/119642172#Comment_119642172

Got the year wrong :-)

But the principal remains the same..

Retire @66 and get $210,496 by age 82

Retire @70 and get €196,560 by age 82

So a ~€13k saving for the State..

mumo3

https://www.boards.ie/discussion/2058264154/pension-at-70

coming into place in 2024..... they clearly are preparing for continued inflation

Shauna677

https://www.boards.ie/discussion/comment/119642158#Comment_119642158

Im sure the multitude will make up their minds. This policy has been quite common in The UK and Ameruca for years. We just lagging behind here. Remember there are many people out there whose whole social system and daily routine revolves around their jobs. Take that away from them and they dead within two years of retirement. So yes for many people this is more than just the extra pension payment.

Trigger Happy

The thought of working until I am 70 would put me in an early grave.