insufficient contributions for full state pension

Could someone explain how rental income helps toward pension contributions or where on Welfare site I would find this info.This is all your fault Old Nick lol..good luck in the future.
 
Am glad you asked that question,Mary.
I also still can't seem to find exact written info as to what or how PRSI contributions count towards OAP on "non-working" or "unearned"income-whether rental income or income from interest earned (i.e. PRSI levied on DIRT).
 
Reading this post and have a similar dilemma to Old Nicks wife Wondering did you ever get any further confirmation from Social Protection that rental or unearned income was acceptable for a contribution for pension purposes. My social welfare record dating back to 1979 shows me with D contributions until 1988( as I worked for Local Authority). I ceased work then and will probably be allowed some homemakers years from 1992 to about 1998. I commenced work again in 2005 at age 48 and am still employed paying an A contribution. I have just got 520 now as had a small amount of census work. I have rental income but unsure whether it was all credited to my husband originally and he is self employed. Any help or advice regarding unearned income and mivxed contributions would be appreciated.
 
This might be of interest.
Under present rules.
If you are classed as self employed you can for 500 per working year buy that years ie 52 contributions. Use a form VC1,from any social welfare office.

Ardarvan , Buncrana is were you can write and get a print out of contribution records.

I suggest everyone should do this.

Sligo , Is where queries seem to be answered .

My experience is that both offices are genuinely helpful.
 
one thing on vc's you have to have sufficient paid contributions to be accepted, the rules changed in 2013, it used to be 260 paid up until April 2013, It is now increasing by 104 per year until it reaches 520 so for 2015 it will be 368.
On the income from rental and interest download the offline desktop app from the revenue website input your details and it will calculate if you have a prsi charge.
 
I was under the strong impression that PRSI levied on unearned income (rent or deposit income) did not qualify for any benefits such as contributory pension.

I am going by this page which says:

"Anyone with unearned income of over €3,174 is considered to be a 'chargeable person' and is liable for the new 4% PRSI charge. They pay the charge under Revenue's self-assessment system (Pay and File). The new PRSI charge is paid at Class K and does not entitle the person to any social insurance benefits."

If anyone knows different I'd like to hear it, since it affects me.
 
nagel said:
have a read of sw 74
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Ok, SW74 makes it all a bit stranger. If you are self-employed, and earning more than €5,000 p.a., you pay class S contributions on all your income, both earned and unearned, and these count as payments toward pension entitlements. If you are in PAYE employment, previously you didn't pay PRSI on unearned income, but now (from 2014) you pay them at class K which does not confer any entitlements, although you probably have entitlements from your Class A payments on your PAYE income. If you are unemployed, you can get PRSI credits to count towards entitlements.

But if you are not employed and not seeking work (like me) you now have to pay PRSI at Class K on unearned income even though it entitles you to nothing. Furthermore, you can't pay voluntary PRSI at €500 unless you were previously self-employed (which I wasn't). So I can't get any credits in spite of paying thousands in PRSI each year. Seems a bit unfair. I guess the option is to try to find self-employment worth at least €5,000 for one year, and then pay voluntary contributions thereafter. (I don't think I can just declare myself to be self-employed but getting nothing other than unearned income).
 
Yep its hard to get definite information on this , but if you have unearned income in excess of 5000 say from interest you can pay s rate prsi, as per the revenue offline desktop app I mentioned earlier, and as far as I know if your total income is from interest you can declare yourself self employed, (self employed investor) likewise if your interest doesn't make 5000 would it be an option to make up the difference doing odd jobs.
One further complication , if you happen to be on a pension even with 5001 interest or rental then you wont pay s class prsi, however if you make even 1 euro from a trade or business you will then pay s rate, again you can run all these figures in the revenue app
 
Thanks for all the input. Reading all this with great interest. I too was of the opinion that once you gave up /lost your job you could make voluntary contributions once you commenced within a year. any further input appreciated. Thanks
 
Meath Lady said:
Thanks for all the input. Reading all this with great interest. I too was of the opinion that once you gave up /lost your job you could make voluntary contributions once you commenced within a year. any further input appreciated. Thanks
Click to expand...

Yes, you can always pay voluntary contribs but the €500 only applies if you were paying Class S. If you were in PAYE employment it's 6.6% of previous year's salary and I gave up a job paying hundreds of k.

nagel said:
Yep its hard to get definite information on this , but if you have unearned income in excess of 5000 say from interest you can pay s rate prsi, as per the revenue offline desktop app I mentioned earlier, and as far as I know if your total income is from interest you can declare yourself self employed, (self employed investor) likewise if your interest doesn't make 5000 would it be an option to make up the difference doing odd jobs.
Click to expand...
That's interesting, and something I didn't know. Thanks. Will check it out.

EDIT: Just checked Form 11. There isn't any place to declare yourself self-employed that I can see. You just submit your income and accounts from self-employment. If you don't have any, presumably you are not self-employed.
 
have to register as sole trader/self employed with revenue first their website has details
 
dub_nerd said:
But if you are not employed and not seeking work (like me) you now have to pay PRSI at Class K on unearned income even though it entitles you to nothing. Furthermore, you can't pay voluntary PRSI at €500 unless you were previously self-employed (which I wasn't). So I can't get any credits in spite of paying thousands in PRSI each year. Seems a bit unfair. I guess the option is to try to find self-employment worth at least €5,000 for one year, and then pay voluntary contributions thereafter. (I don't think I can just declare myself to be self-employed but getting nothing other than unearned income).
Click to expand...

I am in the same position at the moment i.e. not employed and not seeking work but I have been able to register as a homemaker which means that the time until my youngest turns 12 will be taken into account for the contributory pension.
 
dub_nerd said:
Yes, you can always pay voluntary contribs but the €500 only applies if you were paying Class S. If you were in PAYE employment it's 6.6% of previous year's salary and I gave up a job paying hundreds of k.
Click to expand...
This has always struck me as very unfair. Two people unemployed - one from a low paying job and one from a high-paying job - one can keep their PRSI contribution record going by paying 250/500 a year but the other person might have to pay 10K+ (every year until retirement/full contributions) for the exact same benefit accrual.
One possibility for the higher paid person is to wait a year and get a low paid job for a short period of time (Christmas job in Boots/Dunnes/Argos?). That low paying job will then be the reference for future voluntary contributions.
 
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