Voluntary PRSI contributions dilemma

ATC110

For the year 2022 I only have 26 weeks' Class A contributions.

I am required to submit a Form 11 (tax return) but have zero additional liability for PRSI due to self-employed income being below €5000.

It will cost €500 for the 26 weeks' contributions to make up the 2022 shortfall (26 weeks).

As it stands, if I continue to contribute to my record up to my 66th birthday (current retirement age), I will have just over (2086 contributions) the prerequisite 2080 contributions (40 years x 52) for a full Contributory State pension.

My rationale is that it may be worth paying the voluntary contribution now as an insurance policy in the event of missing future contributions, for whatever reason. 

Is it worth making a voluntary contribution of €500 for 2022?

Thanks in advance. 

JoChervil

It depends how far away you are from retirement age. If more than 11 years, so you will have to have, as you've said, 2080 contribution for maximum pension. These 500 euro will cover 1/80 of them. Next year maximum pension will be 14 419.6, so 1/80 of it will be roughly 180. So practically in 3 years of retirement you will have 540euro back. And if you are going to live longer than 69, so with each year you will have this 180euro extra bonus. Only you can judge how healthy you are to benefit from it...

ATC110

https://www.boards.ie/discussion/comment/121321192#Comment_121321192

I have over 11 years to go to age 66-what is the significance of “over 10 years”

I will potentially have 2078/2080 contributions at the end of the calendar year preceding age 66 if I contribute/get credits continuously up until then but I'm thinking if anything happened in the meantime that I stopped contributing and wasn’t entitled to credits.

In that case I could maintain my record by making voluntary contributions up to retirement age however they are likely to be more expensive than the current €500 PA.