world201812
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I think by the time you will retire the state pension will be more than likely be history
A post some time back almost the same ,Private sector worker in my mid-30’s trying to get my head around pensions.
Many of the posts and threads here are very informative/helpful, but still have a few questions.
I’m in a DC scheme and appreciative of it etc but trying to get a sense of things.
As someone suggested a couple of years ago I wrote to the Department of Social Protection to get a list of my credits, what I have so far.
I got them for the year up to the end of 2014, and to add to the confusion there were years since the recession hit when I was unemployed for part of the years, say from 2010-2016ish.
For 10 of the 11 years 2004 to 2014 inclusive I have 52 weeks ‘reckonable paid contributions for pension’, while in 2011 I had 26 weeks.
2015 and 2016 I estimate I worked 11 of the 12 months, but I can check this by asking for another form from the Department of Social Protection.
In general, if I want to look after my retirement plans, is my best option to get a job in the public sector?
- So, my questions are, how many years of full years of ‘reckonable paid contributions for pension’, are needed to get the full state contributory pension upon retirement? Is it 40?
- In the case of the year for example when I had 26 weeks contributions, is it possible to ‘buy back’ the 26 weeks outstanding so I am fully credited? If so, how, and to whom?
- At the moment it is payable at 66 I see, and will rise to 68 is that right?
- If I started paying pension contributions in 2004 when I was 21, and I need 40 years contributions to get a state pension, am I right in thinking I would in theory ‘only’ need to work until I was 61, to qualify for the full state pension?
- Then, what would happen I would either work from 61 to 68 at the time, or else claim social welfare/job seekers benefit for some of that period?
I have a company DC scheme which is great, and had a separate PRSA from a previous life but when I look at the charges on the latter I was absolutely horrified.
The pensions thing is an absolute minefield. From what I can make out, as a private sector worker, you can put money away for a pension alright but there are lots of caveats there that basically say, you could end up with damn all, despite trying to plan for retirement etc.
In my employment I pay a small enough fee of 0.7% which is little compared to the PRSA charge, is the pensions levy the equivalent charge for public servants etc?
I don’t begrudge public servants any of their pension benefits, I’d say for many of them in high skill roles and when the pay is less than the private sector, thebut trying to get my head around things, and options.
Thank you.
Interesting how some are prepared to roll over on there belly and allow the government to cheat them out of there entitlements
There are no "entitlements" as such, only promises made to the younger generation in that if they pay enough taxes to pay the current crop of pensioners, then when it is their turn the next generation will also pay taxes so that they can collect a pension at that time.
Given that the number of workers paying taxes is not increasing at the same rate as the number of pensioners collecting pensions, then something has to give - today's young workers are most unlikely to have state pensions on a par with today's
A single person aged 35 on 30000 will take home pay of 488 per week and have to live on 239 per week state pension if retiring in 2018 and full prsi contributions 49%There are no "entitlements" as such, only promises made to the younger generation in that if they pay enough taxes to pay the current crop of pensioners, then when it is their turn the next generation will also pay taxes so that they can collect a pension at that time.
Given that the number of workers paying taxes is not increasing at the same rate as the number of pensioners collecting pensions, then something has to give - today's young workers are most unlikely to have state pensions on a par with today's
Leo bank of mum and dad– Thanks a million for your advice. Now that I have a company scheme, my days of contributing to a PRSA with a 5% charge is long over! The latter charge blew me away. And hopefully the DC fund will go very well.
While I am a 40% taxpayer, to be honest given my modest income I was in stitches reading this ‘And you’ve an asset to pass on to the next generation should you so wish’, but point taken.
– Noted regarding the pension and its likelihood.
– Should I buy back state contributions/credits for years when I didn’t work, the 26 weeks etc? Anyone know if so, how?
I have met lots of people who regret putting off paying into there pension when they were younger because they listened to people trotting out the same old story wait until you are paying enough tax at 40% before starting to pay into there pension the fact is if you can cut your standard if living by 19% at 30000K you can capture the only tax break most paye taxpayers have at 35
again at 50000k if you can see your way of cutting your standard of living by 16.5% you can also capture the only tax break paye tax payers have at 35,
I am sure some of ye listened to the spokesperson calling for the tax break on pensions to be taken away so others can gate crashed the prsi fund ,
I don't think so Just out of interest why would you pay into some thing you have no control over if you have money put in in a fund that you control ,– Thanks a million for your advice. Now that I have a company scheme, my days of contributing to a PRSA with a 5% charge is long over! The latter charge blew me away. And hopefully the DC fund will go very well.
While I am a 40% taxpayer, to be honest given my modest income I was in stitches reading this ‘And you’ve an asset to pass on to the next generation should you so wish’, but point taken.
– Noted regarding the pension and its likelihood.
– Should I buy back state contributions/credits for years when I didn’t work, the 26 weeks etc? Anyone know if so, how?
Lots of schemes allow you to put in an AVC and you are charged the same annual fund management fee,AVC are kept seperate,Cheers Retired 2017
Under my work scheme 100% of all contributions are invested. Is this what you mean? I’m told the only charge which applies to me is an annual fund management charge of typically 0.65%.
What do you mean by ‘if so avc is the way to go’…? Why/how would I do this?
On this..
I don't think you can Just out of interest why would you pay into some thing you have no control over if you have money put in in a fund that you control
..I suppose I naively think anything guaranteed by the state is better than the ‘markets’ but as has been pointed out to me in the thread, my thought/mindset on this is wrong. Cheers
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