Cost of voluntary PRSI contributions

[ClubMan]

Since earning the princely sum of €420 PAYE and three weeks' A0 PRSI stamps in early 2022, I have not engaged in paid employment/self-employment.

Assuming that I don't engage in paid employment again, does this mean that any voluntary PRSI contributions that I might eventually choose to make (in order to make up any shortfall to the 2080 required for a full contributory old age pension) would cost me €500 for 52?

If not, then how is the cost of voluntary contributions arrived at?

Thanks.

 

[Conan]

You don't necessarily need 2080 contributions for a full State Pension. It's possible to get a full pension on less than 2080 - using the Total and Average method.
Even on the Total Contribution Approach you can get close to the full pension if you are just short of 2080 contributions.
So how many contributions do you Have?

 

[ClubMan]

Thanks @Conan.

So how many contributions do you Have?

1,808 according to my myWelfare statement. But I need to enquire with SW why there seem to be a few (c. 26) missing for one year. However, a possible spanner in the works for the purposes of the averaging method, is that my first A1 contribution was at age 16 in 1982.

 

[bstop]

As you are only a few years short you could reach the 2080 using Jobseekers credits.
This would cost you nothing. You could request that the Jobseekers credits be backdated to your last paid contribution on the basis that you were not aware that you should have signed on immediately after the last paid contribution.

 

[ClubMan]

As you are only a few years short you could reach the 2080 using Jobseekers credits.
This would cost you nothing.

Thanks @bstop. Do you mean this payment or actual jobseeker's benefit? I would not currently qualify for the latter as I have used it up already late 2021 and early 2022.

Payment for people who retire at 65

If you retire at 65, you may qualify for a benefit payment until you reach 66. The payment is similar to Jobseeker’s Benefit, but you don’t need to be looking for work or sign on at your local Intreo centre.

www.citizensinformation.ie

You could request that the Jobseekers credits be backdated to your last paid contribution on the basis that you were not aware that you should have signed on immediately after the last paid contribution.

I don't understand this. Maybe you can explain it further please? In case it matters, I stopped working in September 2021, and claimed JB into 2022 until it ran out.

 

[bstop]

Thanks @bstop. Do you mean this payment or actual jobseeker's benefit? I would not currently qualify for the latter as I have used it up already late 2021 and early 2022.

Payment for people who retire at 65

If you retire at 65, you may qualify for a benefit payment until you reach 66. The payment is similar to Jobseeker’s Benefit, but you don’t need to be looking for work or sign on at your local Intreo centre.

www.citizensinformation.ie

I don't understand this. Maybe you can explain it further please? In case it matters, I stopped working in September 2021, and claimed JB into 2022 until it ran out.

No I am not talking about the 65s benefit.
When your paid Jobseekers benefit ended you could have applied to continue signing for Jobseekers credits. The Jobseekers credits are reckonable for the contributory pension and you can continue to claim them up to age 66.
If you phone your local intero center and tell them you wish to sign on for Jobseekers credits they will assist you. You will have to agree that you are actively seeking work and are available for work. In practice the intreo staff do not persue you in relation to either of these when you are only claiming credits. Actively seeking work can be as simple as reading the situations vacant in the daily newspapers and you would always be available for work if the right job was to become available.
You would not need to request backdating as you would gain enough credits from now.
You need to start claiming credits within 2 years of your last paid contribution so you would need to claim before the end of August 2023

 

[ClubMan]

No I am not talking about the 65s benefit.
When your paid Jobseekers benefit ended you could have applied to continue signing for Jobseekers credits. The Jobseekers credits are reckonable for the contributory pension and you can continue to claim them up to age 66.
If you phone your local intero center and tell them you wish to sign on for Jobseekers credits they will assist you. You will have to agree that you are actively seeking work and are available for work. In practice the intreo staff do not persue you in relation to either of these when you are only claiming credits. Actively seeking work can be as simple as reading the situations vacant in the daily newspapers and you would always be available for work if the right job was to become available.

Thanks @bstop. I need to talk to SW anyway about other stuff so will ask about the jobseeker credits, but I suspect that they are not relevant here because I am not and will not for the foreseeable future be seeking employment for various reasons.

Does anybody know the answer to my original question though?

 

[bstop]

With your low earnings in 2022 you would pay the minimum voluntary Prsi payment of 500 euro for 52 contributions. You have nothing to lose in applying for credits.

 

[ClubMan]

With your low earnings in 2022 you would pay the minimum voluntary Prsi payment of 500 euro for 52 contributions. You have nothing to lose in applying for credits.

Thanks @bstop, I'll definitely follow up with SW about that and the other issues that I have.