Class S PRSI and the State pension

[Marianne]

Hi,

As far as I know Class S PRSI is payable by self-employed people once income is €5,000 in a year. It's paid at the rate of 4% with a minimum payment of €253.00.

My question is this - if someone is working part-time during a year (and relaxing for the rest of the year ), earns €5,000 for say 10 weeks work, pays the appropriate tax on the €5,000 at the end of the tax year and pays their Class S PRSI, do they get allocated 52 weeks Class S PRSI for that year?

Thanks.

 

[Time]

Yes. It counts as a years contributions for the pension.

 

[Marianne]

Many thanks.

 

[Palerider]

In terms of value this has to be the best way to fund a non contributory non means tested state pension in the future, Is there better value anywhere in the pensions industry..I don't think so.

 

[Black Sheep]

This would become a Contributory Pension if you fund it in the above manner.
Could you continue it for 30 years?

 

[Protocol]

Palerider,


good point, 253 pa for 10 years gets you 230 pw forever.

However, things may change in the future.

 

[Black Sheep]

Protocol
Sorry to burst your bubble but it's not as simple as that. Remember the small print

 

[Time]

What small print?

 

[RETIRED2017]

In terms of value this has to be the best way to fund a non contributory non means tested state pension in the future, Is there better value anywhere in the pensions industry..I don't think so.

No problem,The top 10% love paying there taxes when you think about all of the above who will be retiring each year for the next forty years,there will be nothing left for the people who pay all of the tax .

The good news is they don't mind,