Bridging years before state pension

M

moneymakeover

Registered User
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This is probably quite common issue for people retiring early

For person with private defined contribution pension, what is recommended way to plan for those years after retirement before state pension?

For example say official retirement age is 68

But actually retire at 66

How to have enough to get by until state pension?

Some options spring to mind
  • Use the 25% lump sum
  • Start avcs
  • Start savings
  • Scrape by for 2 years
Also presumably buying annuity aged 68 is better that aged 66
 
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Or maybe for most people the state pension is only a small fraction of their pension and something they can manage without for 2 years?
 
Jobseeker’s Benefit for people over 65
People over 65 who are claiming Jobseeker’s Benefit (JB), and who have at least 156 PRSI contributions, can continue to receive JB until their 66th birthday even if their claim is due to end before that date. This special provision extends the duration of JB for people aged 65 and over and aims to support the transition of older workers from the labour force into retirement.


I guess the 66 birthday will increase to 67 and 68, in line with the State Pension qualifying age.
 
What exactly is the point of raising the State Pension qualifying age, if you just pay some other benefit in the meantime?
 
Nermal said:
What exactly is the point of raising the State Pension qualifying age, if you just pay some other benefit in the meantime?
Click to expand...

fair point but remember
1) most self employed will keep working
2) employer may let you stay beyond 65
3) there are some who don't want to claim unemployment ( i dont agree with them btw)

so no doubt goverment do save money with change
 
They want people working longer, paying more tax into the system. Its the ultimate Ponzi scheme.
 
It's not simply that "the Government save money". We all - taxpayers- pay for the State Pension. Average life expectancy for a male retiring at 65 is now approaching 20 years , more for females. This figure has increased by some 60% (from circa 12 years) over the last 50 years. So State Pensions are becoming more expensive as time goes on. Compulsory retirement at age 65 does not suit everyone, many want to - and can - continue working.
Ultimately all the SW benefits have to be paid for. The "rich" can't pay for everything (despite what SF, Paul Murphy, Solidarity et al might suggest).
 
When they're calculating the cost of the State Pension, do they factor in the fact that it's taxable?

i.e. some people get €12k but end up ponying up €6k in tax.
 
Gordon,
If your only income is the State Pension - as it is for many- you won't be paying any income tax.
 
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