State pension if retiring early

https://www.boards.ie/discussion/comment/122565745#Comment_122565745

If your only income is rental income, it’s classed as self employment and Class S prsi applies. These are reckonable for state pension purposes. You can check your contributions with welfare

https://www.boards.ie/discussion/comment/122499021#Comment_122499021

everyone is technically eligible for the non contributory pension.

They just have to pass the not very rigorous means test

I’m not sure the people who don’t pass that are people you should have much “sympathy” for. People who didn’t pay any PRSI and have plenty of money. Good luck to them of course, but they can’t complain too loudly IMO

Mrs OBumble

Agreed

But they are an example of a group of people who are not eligible for any state pension.

There are other people who also did not pay any contributions- but are eligible for the no-contributory state pension.

celtic_oz

If you are recieving rental income only and paying PRSI on that income what type of class/stamp do you recieve for this, assume these stamps are deemed as valid when state pension is being calculated ? thanks

Riskymove

https://www.boards.ie/discussion/comment/122248902#Comment_122248902

The government workers are not eligible for the state pension because they did not pay a qualifying rate of PRSI

it is not because they have a pension

coylemj

https://www.boards.ie/discussion/comment/122494354#Comment_122494354

Further to the response above, if you are not working and are available for work, you can sign on for credits and use up to 10 years of credits when claiming the state pension.

https://www.gov.ie/en/publication/99f84f-operational-guidelines-prsi-credited-social-insurance-contributions/

https://www.boards.ie/discussion/comment/122494354#Comment_122494354

You pay one amount each year and in general get 52 contributions added to your record for that year. Details of the amount you pay are set out here: https://www.citizensinformation.ie/en/social-welfare/irish-social-welfare-system/social-insurance-prsi/voluntary-prsi-contributions/ and also here

https://assets.gov.ie/38673/656d7d9c50a74c3a8b586ac024431236.pdf

[Deleted User]

https://www.boards.ie/discussion/comment/122194108#Comment_122194108

How can I make voluntary contribution. Plus do I need to make 52 voluntary contributions or one is enough to get extra contributions. Thanks

https://www.boards.ie/discussion/comment/122250587#Comment_122250587

not to be pedantic but the court ruled on one case, and one case only. Anyone else who wants it can either wait for the legislation, or take their own case.

So they’ll all wait

https://www.boards.ie/discussion/comment/122250301#Comment_122250301

Ah, but anyone whose application is turned down before the legislation has been amended is guaranteed to win in the courts following the Supreme Court verdict.

https://www.boards.ie/discussion/comment/122246117#Comment_122246117

Not when they’re not. It still has to be legislated for

Mrs OBumble

https://www.boards.ie/discussion/comment/122227524#Comment_122227524

But there's very little difference between the rate paid for the two of them.

The people who really lose out are those who have little themselves but their co-habiting spouse has income or non-personally-used assets. Their rate of non-con state pension is very low.

There's also groups of former government workers who are not eligible for state pension, because they have an occupational pension.

Geuze

https://www.boards.ie/discussion/comment/122227471#Comment_122227471

No.

The State Pension is not universal.

My father and all of his retired colleagues do not get the State Pension.

https://www.boards.ie/discussion/comment/122227557#Comment_122227557

And on a deceased partner's contributions, following a recent Supreme Court verdict.

https://www.rte.ie/news/ireland/2024/0122/1427908-court-pension/

There’s also the widows (and widowers) pension which may suit some. Can be claimed on a deceased spouse contributions

https://www.boards.ie/discussion/comment/122227471#Comment_122227471

No, they don't.

There are two versions of the State Pension

State Pension Contributory: Not means tested but entitlement is based on your PRSI contribution history

State Pension Non-Contributory: Means tested, not dependency on PRSI contributions

The age at which you receive the SPC is now variable in the range 66 - 70, you choose the start date.

blingrhino

Excuse my ignorance but does every citizen not get the state pension when they reach the age of 66 regardless of employment history.

https://www.boards.ie/discussion/comment/122227368#Comment_122227368

The problem with this is that having 520 paid contributions opens up credits which can significantly help

If you have no barrier but allow credits, then you’re giving a decent pensio to people who didn’t pay PRSI and who are too wealthy for the means tested pensions

And that’s unfair too

Viscount Aggro

Whatever happens, they will find a way to screw you out of the full pension.

Its way too complicated for the average person to figure out.

I dont get why people are worrying about the state pension. I bet they will means test the contributory pension in a few years time.

If you are retiring early, you should have a good private pension, or other assets producing income. Rent, investments etc.

https://www.boards.ie/discussion/comment/122227235#Comment_122227235

the change in 2012 was legislated for in 1997 so you’ll get plenty of notice if it happens.

Anyone who thinks they should get a pension with less than 10 years prsi paid is taking the piss anyway IMO

Given that the the transition to TCA (Total Contributions Approach) as the sole basis of calculation is now underway and the bedding in of the HomeCaring Credits , it's unlikely that the threshold will change in the immediate future. IN any event, any change would need to be signalled well in advance.

https://www.boards.ie/discussion/comment/122227235#Comment_122227235

It strikes me that the next threshold may not ever happen! Or if it does, then it might be just 1 paid, reckonable contribution!

The logic behind the TCA is that every reckonable contribution (paid or credited) will be worth 1/2080th of the full pension. So if you've accumulated a total of (say) 208 reckonable contributions over your working life, then you should be eligible for a pension of 10% of the maximum SCP.

Bykobap

Before 2002 156+ contributions

Between 2002 - 2012 250+ contributions

From 2012 minimum 520+ contributions

When is the next threshold gonna be introduced & what it'll be?

https://www.boards.ie/discussion/comment/122204851#Comment_122204851

A couple of things:

If you are short by a small number of contributions, Pre Entry Credits (PECS) might assist. These are awarded when a person takes up insurable employment for the first time and pays a full rate contribution. PECS are awarded from the beginning of the relevant contribution year to the date of commencement of insurable employment. So for somebody who first started working in September and paid 22 contributions, they should get 30 additional PECS for that year to bring them to 52 reckonable contributions for that year. Note that PECS may not be added to your contribution statement until your pension application is being reviewed.

The maximum number of reckonable contributions for any year, irrespective of how many were paid and or credited is 52. There is one exception to this because of the change of the contribution year to the April to March year, there is a maximum of 66 contributions allowed for year 1978/79. If relevant, this should be shown on your contribution statement.

MrRigsby

Pre ‘95

coylemj

First, take note of what Goldengirl said in post #41 above and see the link in her post - not everyone can sign on for credits.

But if your friend meets the conditions, he can ask to sign on for credits and if he is eligible, he wouldn't need to pay the voluntary contributions. The maximum amount of that type of credit he could use for the pension is 10 years and, given that he retired at 55, maybe he plans to sign on for credits when he gets to within 10 years of pension age or it's possible that he previously signed for credits during a period of unemployment so he's already used up some of that 10 years allowance.

SharkMX

https://www.boards.ie/discussion/comment/122202250#Comment_122202250

Hs not on the dole. He got kicked off the dole because his wife is working. He retired when he was 55. He has no intention of going back to work.

This sounds interesting. Tell me more?

Goldengirl

Not everybody can sign on for credits .

There is an option to pay voluntary contributions if that is you , op , if retiring early .

If you are signing on for social welfare you are automatically credited for that time .

"If a self-employed person has only ever paid Class S PRSI contributions then he or she is not entitled to credits. "

https://www.gov.ie/en/publication/99f84f-operational-guidelines-prsi-credited-social-insurance-contributions/#:~:text=In%20order%20to%20qualify%20for,for%20various%20social%20insurance%20benefits.