# Contributory Old Age Pension



## Wren100 (18 Aug 2011)

During the term of the last government, it was planned that by 2020, those who had paid 1560 'stamps' over their working life (about 30 years worth) would be entitled to full, contributory state pension upon retirement, as is the case in the UK.  Does anybody know if the current government has dropped this plan?  Are we still going to have to maintain an average of 48 'stamps' per year across our working lives (as has been the case until now) in order to qualify?


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## Baracuda (19 Aug 2011)

These were plans that were proposed by government at that time and have not been legislated for as of yet, but given the current climate and the fact that we have lost sovernty I would say Fina Gael will adopt this part of the proposals as it should save money.


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## orka (22 Aug 2011)

How would this save money?  Will it be a new rule replacing the old one?  Or will it be either '30 years contributions' OR 'an average of 48 over your working life'?

I've always felt the 'average contributions' was very unfair to those who started work early - either not going to college or even having a summer job age 16 - setting the clock ticking on 'working life' - you could have someone working fulltime for 40 years from 18 to 58 but not getting a full pension and another person getting a full pension with only 20 years of contributions.  A full pension for 30 years' contributions over a working life seems fair.


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## Wren100 (28 Aug 2011)

Unfortunately, 'fair' seems to have nothing to do with it.  I'm 47 now and have been working since I was 17.  Factor in a couple of years on and off over that time when I was not paying a 'stamp' for one reason or another and I'm at a position where I cross the 1560 threshold sometime in 2013.  At that point, I would like to leave for Scotland where my fiancee lives with a reasonable hope of at least qualifying for an Irish state pension at 68.  However, as things stand, I may work till I drop since the '48 stamp per year' rule is still in effect.  I know I can add any stamps I may collect in Britain to my total, but I would like to be able to calculate what I may take in retirement when the time comes.  At the moment I have the 48 stamp per year average (just about) but that will drop away quickly after I leave.  At the same time, people who came late to the workforce will qualify for the full whack come 68.


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## Black Sheep (29 Aug 2011)

Would you consider voluntary contributions. 
With all the proposed changes I,m not sure what their value would be in the future but it might be worth looking into.


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## twofor1 (29 Aug 2011)

Wren100 said:


> However, as things stand, I may work till I drop since the '48 stamp per year' rule is still in effect. .


 

While you need an average of 48 for a 100% pension, once your average is over 20 you qualify for a 98% pension.

In your case, even if you never make any further contributions, your average when you reach retirement age will easily qualify you for this slightly reduced pension.

http://www.welfare.ie/EN/Publications/sw122/Pages/7Whatarethevariousamountsofstandardratepension.aspx


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## Wren100 (30 Aug 2011)

twofor1 said:


> While you need an average of 48 for a 100% pension, once your average is over 20 you qualify for a 98% pension.
> 
> In your case, even if you never make any further contributions, your average when you reach retirement age will easily qualify you for this slightly reduced pension.
> 
> http://www.welfare.ie/EN/Publications/sw122/Pages/7Whatarethevariousamountsofstandardratepension.aspx




Thanks, twofor1 - finally something which could be classed as good news.


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## Ann1 (2 Sep 2011)

Wren100 said:


> During the term of the last government, it was planned that by 2020, those who had paid 1560 'stamps' over their working life (about 30 years worth) would be entitled to full, contributory state pension upon retirement, as is the case in the UK.  Does anybody know if the current government has dropped this plan?  Are we still going to have to maintain an average of 48 'stamps' per year across our working lives (as has been the case until now) in order to qualify?


Just found this link on welfare.ie......it would appear that 30 year plan must be going through as it's now listed on their site.
http://www.welfare.ie/EN/Schemes/Pension/Pages/statepensionchanges.aspx


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