Getting to 2,080 PRSI contributions

I purchased notional service and I did not get PRSI credits for these years and they were not counted for supplementary pension purposes.

So there is not benefit in the civil / public service where you can "buy" prsi contributions. You are buying additional non-coordinated service.
 
Of course everyone should maximize their contributions but isn't there some type of cost benefit analysis here?

Being 207 short means a 90% pension, about 700 less annually how much is that shortfall over say 20 years compared to the cost of voluntary contributions etc.

Also if relevant what about other pensions, if you are company director the arrangements are quite generous and might generate as much in a tax efficient way
 
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DingDing
Buying notional service in your Occupational Pension Scheme is entirely different than Voluntary PRSI Contributions or getting PRSI Credits.
 
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.
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I was clarifying this point, arguably buying back years is very expensive, with many Civil and Public servants opting for AVC's instead.
 
mmclo said:
Being 207 short means a 90% pension, about 700 less annually how much is that shortfall over say 20 years compared to the cost of voluntary contributions etc.
Click to expand...
€700 x 20 years = €14K
207 / 52 weeks =~ 4 years of voluntary contributions @ €500 = €2K

€14K > €2K

(Of course the voluntary contributions might be priced based on a previous salary rather than the €500 p.a. And in some cases the €250 cap on 52 contributions might apply.)

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
 
Yeah I’m about 10 years short assuming I’m working until 65. And early retirement plans are off the menu.
 
Annieindublin said:
Yeah I’m about 10 years short assuming I’m working until 65.
Click to expand...
Aren't some options for maximising your PRSI contributions/credits outlined here?

What should I do for the next few years before retirement?

Age:62 Spouse’s age:60 Number and age of children: adults not living with us Income and expenditure Annual gross income from employment or profession: approx €100k Annual gross income of spouse: €105k Monthly take-home pay Approx €7,300 combined Type of employment: Both private In general...
www.askaboutmoney.com
Annieindublin said:
And early retirement plans are off the menu.
Click to expand...
Well there's no early retirement when it comes to the state pension. The earliest that you can get it is 66.
 
ClubMan said:
€700 x 20 years = €14K
207 / 52 weeks =~ 4 years of voluntary contributions @ €500 = €2K

€14K > €2K
Click to expand...
Or to put it another way, using Standard Life Annuity Calc, you would need €20,000 to secure a 2%-indexed pension of €824pa.

€2k for an inflation-adjusted €700pa is as cheap as buying money for life gets! (Except maybe the UK pension thingy going on just now)
 
conor_mc said:
Or to put it another way, using Standard Life Annuity Calc, you would need €20,000 to secure a 2%-indexed pension of €824pa.
Click to expand...
Thanks for sharing details of another annuity calculator for the public to use.

The last question in the calculator is an interesting insight into the world of financial advice/ service and remuneration for same.

When I was seeking annuity quotes for myself and approached SL directly I was asked the same question to which I answered zero….and this was accepted.
 
I was empathising with the OP @ClubMan and I can’t afford to miss even more contributions by retiring early. I know you can’t collect state pension early.

And yes I got great advice there.

Just not a lot you can do about missing years. Extended education and travelling … totally worth it
 
1873/2080 = 90.048%
((265*52) - (238.5*52) / 52) = 26.50.
Wouldn't you be better off horsing a load of money into a pension as you are a director of a Ltd. Co. and there are oodles more ways of making that tax-efficient instead of worrying about 100 gross a month? (On page two of this thread people are saying similar things about a director's pension and the fact that after year 3 of the State Pension you're quids in after paying the extra PRSI payments worth ~2K). If you have enough income from the company - why not do both?
 
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