http://www.welfare.ie/EN/Topics/PRSI/Pages/volcons.aspxUnder EU legislation it not possible for a person to be subject to the social insurance systems of two or more member states at the same time. This means that you cannot pay Voluntary Contributions in Ireland at the same time as you are in insurable employment, self-employment, receiving credited contributions or paying Voluntary Contributions in another EU member state.
Hi Janet,Also check out this thread: Does state contributory pension discriminate against early starters/ broken record? - there's a link to a social welfare page where you can request a statement of your pension entitlements.
Any takers on this question?
Just seeing this here a few years later. You realize that you have to pay tax to the German taxman when you reach pension age- regardless if you live in Ireland or Germany? I am unfortunately in the same boat. I paid voluntary contributions into the DRV pension pot- and I am left now with a yearly tax declaration to the Germans- regardless if I have an income lower than their tax free allowance or not! For the rest of my life....A warning to all who think about paying into the DRV!Reviving an old thread here as things have changed a bit..
@Janet: the changes announced to pensions in Ireland will probably work out in your favour. By the time you retire, the averaging mechanism will have been replaced by a "total contributions" mechanism. A full contributory pension will be due to anyone who makes 30 years worth of contributions (52 contributions being 1 year), regardless of how that was achieved. Anything over that and there's no benefit, anything less and it's pro-rata so assuming your 17 years were all "complete" (ie, 52 contributions) then you'll get 17/30 of a full contributory pension, which is probably better than the averaged result because you started working as a teenager.
In my case it seems it will reduce my expected pension by a tenner a week by my calculations, ho hum.
I am currently excluded from paying voluntary PRSI contributions in Ireland (I have rental income there but am not subject to PRSI as I'm non-resident and it is forbidden to make contributions, even voluntarily, as I am socially insured in another EU state, though this "EU" rule still seems shady to me or Germany wouldn't allow it either) BUT...
I intend leaving socially insured employment before Irish retirement age (around 60 if everything works out) and living from my rental income and private pension fund alone until my German state pension kicks in and later on my Irish one.
I wonder then, could I leave my employment in Germany, briefly return to Ireland at age 60 and become liable for PRSI on my Irish rental income (not socially insured elsewhere and not non-resident) and then return to Germany, continuing to pay PRSI Class S voluntary contributions to boost my ultimate pension entitlement a bit? Any takers on this question?
Welcome to the club!Hi all,
I'm living in Germany and the bulk of my state pension is in Germany. I cannot recommend making voluntary contributions to Germany - it's incredibly expensive! However, if you have a significant number of years worked in Germany and had a good salary, the option is to consolidate your Irish / other EU state pensions into your German one. Yes, the German state pension is incredibly expensive overall, but the payout is far higher than in Ireland. The standard payout is on a 'points' basis. The average income in Germany per year awards you 'one' point. If you earn double the annual income (until the threshold) you can be awarded two points for that year. You receive a State Pension based on your number of points, with 40 points giving you a standard pension, currently worth approximately €1450 per month. So with 80 points, you can receive a State pension of €2900. For me, I only worked in Ireland for a few years, and have lived in many locations, but my base was Germany. I have about 9 years to consolidate from different countries. I understand those 9 years will bring me 9 points. I'd suggest you do the maths and contact the Deutsche Renten Versicherung to understand what might make most sense for you...
Yes, we'll have to pay tax on this pension, but I'm not sure how this works if living in Ireland: surely if resident in Ireland we'd have to do the tax return there?
We will retire to Ireland and I'm actually searching for a thread on here about retiring to Ireland... from Germany, or anyone who can help us with good advice... grateful for all help!
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