I am trying to do a bit of early retirement planning (I'm 38). My understanding is that my pension will be calculated based on Total Contributions, needing 2,080 contributions (40 years).
I have approx 450 Irish contributions so far in Ireland and the same from working in Canada (I am trying to get this confirmed). That means will need to work for 22.7 years to get the full pension.
However as I will also be receiving one from Canada it seems by the below it will be prorated, lets say I do the 22.7 more years will my Irish pension then be (2,080-450)/2080 = 78% of max pension. Correct?
I will also have a Canadian Pension that will likely use its own calculation that I need to look into...
While not relevant to me I understand people have UK pensions in addition to Irish Pensions and not prorated?
Have I got this correct for as of now? Is there any online Calculator for this? Would Revenue (?) confirm this for me?
https://www.citizensinformation.ie/en/social-welfare/irish-social-welfare-system/claiming-a-social-welfare-payment/social-insurance-contributions-from-abroad/
I have approx 450 Irish contributions so far in Ireland and the same from working in Canada (I am trying to get this confirmed). That means will need to work for 22.7 years to get the full pension.
However as I will also be receiving one from Canada it seems by the below it will be prorated, lets say I do the 22.7 more years will my Irish pension then be (2,080-450)/2080 = 78% of max pension. Correct?
I will also have a Canadian Pension that will likely use its own calculation that I need to look into...
While not relevant to me I understand people have UK pensions in addition to Irish Pensions and not prorated?
Have I got this correct for as of now? Is there any online Calculator for this? Would Revenue (?) confirm this for me?
https://www.citizensinformation.ie/en/social-welfare/irish-social-welfare-system/claiming-a-social-welfare-payment/social-insurance-contributions-from-abroad/
How the rate of pension is calculated
The rate of pension, where insurance contributions in another country are being combined with Irish contributions, is calculated as follows:
Step 1
Your notional pension is calculated. Notional pension is the rate of Irish pension which would be payable if your social insurance contributions, both Irish and non-Irish, were treated as Irish contributions. To get the yearly average number of contributions, your Irish and non-Irish reckonable contributions are added together and the total is then divided by the number of years (this is, the number of years from your first paid social insurance contribution to the end of the tax year before reaching pension age (66).
Step 2
The following formula is then applied:
(A x B)/C
Note:
- A = the notional rate of pension (see step 1 to calculate the notional rate of pension)
- B = the number of Irish contributions
- C = the total number of contributions (Irish + non-Irish)
In the agreements with Austria, Australia, Canada, Quebec and UK, (as under EU legislation), where there are less than 52 contributions paid in the other country and a pension is not awarded by that country, the Irish pension is awarded on the sum of the 2 insurance records without the application of the pro-rata rule.