Voluntary PRSI Contributions for Contributery Pension.

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PadraigL

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Hi

My wife 55 and myself 57 left work in January 2018 to travel for 2 years initially ending up traveling over 4 years.
I worked January 2018 and she worked 1 week in January 2018.

We now have the opportunity to stay travelling for the foreseeable future, hopefully until retirement age.

My PRSI contributions are as follows;
1982 - 1986 = 220
1986 - 1991 = 0
1991 - 2018 = 1356

I went back to college from 1986 until 1989 as a mature student. So no PRSI contributions for these years.
We both worked in London from June 1989 until June 1991.

My wife has over 800 PRSI contributions from 1992 until 2018 working part time.
During those years she had an 11 year break of no contributions while staying at home with the kids

Does my wife need to pay voluntary contributions to receive a Contributery Pension?

Because I worked January 2018, will my voluntary contributions be only €500 yearly or 6.6% of 2017 earnings? (which would be €0000's yearly).

Thx.
 
PadraigL said:
My wife has over 800 PRSI contributions from 1992 until 2018 working part time.
During those years she had an 11 year break of no contributions while staying at home with the kids

Does my wife need to pay voluntary contributions to receive a Contributery Pension?
Click to expand...

Were those 800 contributions at PRSI Class A or Class D?
 
PadraigL said:
During those years she had an 11 year break of no contributions while staying at home with the kids
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Were children under 12 the whole time?

Did she receive credited contributions as a stay at home parent? This should have been automatic if she was in receipt of child benefit.
 
NoRegretsCoyote said:
Were children under 12 the whole time?

Did she receive credited contributions as a stay at home parent? This should have been automatic if she was in receipt of child benefit.
Click to expand...
Yes they were under 12.

There is no credited contributions on the "Statement on Social Insurance Payed and or Credited" from the Revenue for those years with the children even though we were recieving children's allowance. The columns are blank for those years.
 
NoRegretsCoyote said:
Did she receive credited contributions as a stay at home parent? This should have been automatic if she was in receipt of child benefit.
PadraigL said:
There is no credited contributions on the "Statement on Social Insurance Payed and or Credited" from the Revenue for those years with the children even though we were recieving children's allowance. The columns are blank for those years.
Click to expand...
Click to expand...
AFAIK - I don't think there are credits for the Homemaker's Scheme. Rather these years are "disregarded" for the purposes of calculating State Pension eligibility - under the "Average Contributions Approach".
Alternatively there is the Home Caring Periods Scheme for the Total Contributions Approach - but again this only comes into play at the point of application for the State Pension. So nothing on the record.

Further info here:

Homemaker's Scheme

If you care full-time for children, or for an ill or disabled person, the Homemaker’s Scheme makes it easier for you to qualify for a State Pension (Contributory).
www.citizensinformation.ie www.citizensinformation.ie

HomeCaring Periods Scheme

The HomeCaring Periods Scheme can help you get a higher rate of State Pension (Contributory) if you spent time out of work to care full-time for a child aged under 12, or a person aged 12 or over (including an adult) who needed an increased level of care.
www.citizensinformation.ie www.citizensinformation.ie
 
PadraigL said:
My wife has over 800 Class A PRSI contributions from 1992 until 2018 working part time.
During those years she had an 11 year break of no contributions while staying at home with the kids

Does my wife need to pay voluntary contributions to receive a Contributery Pension?
Click to expand...

The short answer to your question is NO - she doesn't have to pay voluntary contributions to receive a small State Contributory Pension. Once she has paid 520 reckonable contributions she will receive one.

However I suspect that your actual question is as to whether she has to make voluntary contributions to be eligible for the MAXIMUM State Contributory pension - and the answer is YES she does!

To receive the max pension she would need a total of 2080 reckonable contributions, (52 * 40 years), - note however that up to half of these contributions could come from home caring credits.

From the information that you provided she has over 800 paid reckonable contributions and may also be eligible for 572 (11*52) home caring credits. She would also presumably have made approx 104 payments to the UK NIS which would be reckonable here. Adding these up, she has a total of approximately 1372 reckonable contributions - let's say 1380. So she needs 700 more contributions (paid or credited) to get the maximum pension. If she applies to make voluntary contributions then accumulating 700 more would need 14 years - and she's now 55! So she would need to apply to make voluntary contributions with effect from 2019 (she worked in 2018) - you are allowed to go back for up to five years. That should get her very close to the 2080 contributions required.

Bear in mind that the rules about this may change long before she turns 66 - maybe even as soon as next month's budget - so the sooner you get that application in the better!
 
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