Contributory Pension + Voluntary Contributions ?

J

Joebloggs

Registered User
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My Dad is hoping to retire at 60 and has 40 years of Class A Stamps. Under current rules would he still need to make Voluntary Contributions of €500 per annum to ensure that he will receive the Contributory Old Age Pension when it becomes due ?

I know the Pension situation is currently under review and going to change over the next few years but he would like to know the current situation.

Thanks.
 
Joebloggs said:
My Dad is hoping to retire at 60 and has 40 years of Class A Stamps.
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40 years or presumably 2,080 should qualify him for a full contributory pension from age 66.

State Pension (Contributory) pre 2025

The State Pension (Contributory), previously called the old age pension, is paid to people aged 66 and over, who have worked and paid enough social insurance contributions. This page is for people who were born before 1 January 1959 and did not defer claiming their State Pension (Contributory).
www.citizensinformation.ie
He could claim the equivalent of Jobseeker's Benefit from age 65 if necessary.

Payment for people who retire at 65

If you retire at 65, you may qualify for a benefit payment until you reach 66. The payment is similar to Jobseeker’s Benefit, but you don’t need to be looking for work or sign on at your local Intreo centre.
www.citizensinformation.ie
Joebloggs said:
Under current rules would he still need to make Voluntary Contributions of €500 per annum to ensure that he will receive the Contributory Old Age Pension when it becomes due ?
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No.
 
He should sign on for Prsi credits when he retires. Also if he can get 13 paid Prsi contributions in the year he reaches age 63 he could qualify for the Payment to 65 year olds. 13 weeks of part time work would suffice once he earns at least 38 euro per week.
 
Read the qualification criteria for the over 65's payment and you will understand why.
 
Hard to believe that Voluntary Contributions are only €500 per annum. Money for ould rope as they say
 
noproblem said:
Hard to believe that Voluntary Contributions are only €500 per annum. Money for ould rope as they say
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€500 is the minimum. The actual rate is 6.6% of Reckonable Earnings in the previous tax year.
 
noproblem said:
Hard to believe that Voluntary Contributions are only €500 per annum. Money for ould rope as they say
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This will significantly increase in a future budget.

In the UK Class 2 voluntary NICs are £150 per annum.
 
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