Getting to 2,080 PRSI contributions

J

JohnSp

Registered User
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Hi all,

I'm 56 and looking to make sure I fully qualify for the Contributory State Pension.

After college finished in 1989 I did a good bit of overseas travelling so my PRSI contributions only started in 1994.

In 2001 I went to Asia to work for a few years and in 2005 I came home and set up a one person Ltd Co which I continue to operate and plan to work in until my planned retirement date of 31-12-2034 which is when my wife is also due to retire.

As you can see from my Contribution Statement below I currently have 1,301 contributions and if I add another 11 years (2024 to end of 2034) I'll get to 1,873 leaving me 207 contributions short to qualify for the full Contributory State Pension.

Is it possible to make voluntary contributions to make up the 207 shortfall and if so what's the best way to do that? Do I just call / contact Social Welfare to arrange that or can it be done via my PAYE payroll?

Thanks for reading.

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JohnSp said:
Is it possible to make voluntary contributions to make up the 207 shortfall and if so what's the best way to do that?
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It may be possible. This should clarify at least some of your questions.

Voluntary social insurance contributions

Voluntary social insurance contributions can help you qualify for a social insurance payment in the future. Find out more about making voluntary contributions.
www.citizensinformation.ie www.citizensinformation.ie
 
I think there is a rule that prohibits paying voluntary contributions for years more than 5 years before your application. If I'm correct that rules you out as you seem to have full contributions for the last 5 years (I'm assuming 2024 is just waiting to be updated by the system, usually around March/April time).

The department can accept applications to pay voluntary contributions for years earlier than 5 years ago at their discretion. You can submit the application form with an accompanying written explanation as to why you are late applying. To give you an example where they may waive the time limit rule is in the case of ill health. I don't think claiming ignorance of the system and its rules counts but someone else may know different.

Where they do accept your application you could find that the cost is prohibitive.....but they will tell you what you have to pay.

Good luck in pursuing the target!
 
Assuming you are planning to claim the Contributory pension at age 66.

You could instead, defer claiming up to age 70. This gives you the opportunity to gain 4 more years of Prsi contributions.

These 4 years contributions could be from employment or voluntary Prsi payments.

If you did this you would get a larger pension at age 70.
You would lose 4 years of pension payments.
You would need to calculate how many years it would take you to break even.

Assuming you cease employment at age 66.

You could shorten the break even time span by claiming pay related Jobseekers benefit at age 66. You could also qualify for further Jobseekers benefit payments if you get 13 weeks of employment after your first claim payments end.
 
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Thanks for the info guys.

Ignorance on my part which I accept is no defence.

I assume 52 contributions per annum is the max you can make or, if for example, in addition to working my main job I also had a part time / weekend PAYE role with another company would that 2nd job allow me to make 2 X 52 contributions per annum and thus accelerate my journey to 2,080?
 
No matter how many jobs you may have, the Department will only allow you to accumulate 52 paid reckonable contributions per year.

In fact if you look at your own PRSI record posted above, you'll see 104 paid Class S contributions were recorded for some years but the two key columns show only 52 reckonable contributions.
 
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S class said:
You could also qualify for further Jobseekers benefit payments if you get 13 weeks of employment after your first claim payments end
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Would 13 weeks of employment after the first claim payments end qualify one for another full 9 months JSB?
Could one keep doing this subject to gaining another 13 weeks employment after each claim ends?
 
@Redzer
Yes it would requalify a person for another 9 months of payments.

They would also have to comply with the requirement to have at least 39 paid or credited contributions in the relevant governing year (2 years before the claim date).

I didn't include more than one reclaim in reply to the OP because he will be over age 66 and probably will not be able to qualify for a third JB claim because his governing year will be after age 66.

After age 66 Jobseekers credits are not given while receiving JB payments, so he cannot meet the 39 contributions in the governing rule for a claim when he reaches age 68.

A younger person could qualify for multiple JB claims as you asked.

If a person only has Jobseekers credits and no class A employment income during the governing year they will only qualify for minimum rate JB payment.
This is approximately 110 euro per week.

Jobseekers benefit can be paid up to age 70.
Jobseekers credits stop at age 66.
 
You have nothing in 2003, 2004, and 2005.
Were you perhaps minding children under 12 during these years?
You could possibly get 169 credits for these years (13 in 2002)

HomeCaring Periods Scheme

The HomeCaring Periods Scheme can help you get a higher rate of State Pension (Contributory) if you spent time out of work to care full-time for a child aged under 12, or a person aged 12 or over (including an adult) who needed an increased level of care.
www.citizensinformation.ie www.citizensinformation.ie
 
Hello,

Is it possible to "pre-pay" future years, to get to the total of 2,080 payments, if you are hoping to retire early?
 
Thanks @Forumuser

While I appreciate that you can't draw the pension before age 66, I was hoping that there might be facility to ensure that sufficient contributions were made, without having to do the full 40 years.
 
MrEarl said:
I was hoping that there might be facility to ensure that sufficient contributions were made,
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Isn't it odd that the Civil & Public service allow themselves the option of "buying back years" (i.e. purchase additional years of service when they are short) but no such facility is made available to the rest of us when it comes to the SPC etc.
 
Freelance said:
Isn't it odd that the Civil & Public service allow themselves the option of "buying back years" (i.e. purchase additional years of service when they are short)
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I don't think that the Civil/Public Service "allow themselves" this option. It's the government/law that provides for it.
Freelance said:
but no such facility is made available to the rest of us when it comes to the SPC etc.
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What about voluntary contributions?

Voluntary social insurance contributions

Voluntary social insurance contributions can help you qualify for a social insurance payment in the future. Find out more about making voluntary contributions.
www.citizensinformation.ie www.citizensinformation.ie
 
Freelance said:
Isn't it odd that the Civil & Public service allow themselves the option of "buying back years"
Click to expand...

Just a small clarification. The option to "buy back years" only applies when a person has service which, for whatever reason, was not pensioned at the time. It is often confused with purchasing "notional service", which is actuarially costed and much more expensive.
 
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