PRSI on ARF count for COAP?

Thanks everyone for all the fabulous information, especially @S class

Id really appreciate if somebody could tell me if my assumptions are right below regarding my wife’s situation.

She stopped working 10 years ago and from a PRSI record she has:

1040 - Class A from 20 years employment
312 - From Homemakers (for age 6-12 of our youngest)

Therefore I make it that she is 728 short of the full 2080 (or 14 years worth of reckonable contributions).

She is 51, so what we are considering doing is converting her previous employment DC pension to an ARF and then drawing down €5000 per year for the next 14 years from the ARF to get the additional 728S contributions.

Am I right in then thinking that with her 1040A + the 312 Homemakers + the 728S that this would be the 2080 total that she requires for the 100% state pension??

All guidance gratefully accepted
 
Yes you are correct, she will reach 2080 and 100% pension.

If she has any investment income she might not need to drawdown the full 5000 euro per year from her ARF.

If for instance she had bank deposit interest of 1000 euro in a certain year she would only need to drawdown 4000 euro from her ARF in that year.

This would be useful if her ARF is not large enough to allow drawdowns of 5000 euro for 14 years.

She will also requalify for treatment benefits after approximately 2 years of paying class S Prsi.
 
Thanks @S class, great to get confirmation that we’re not doing something absolutely crazy

And great advice on the other income as she could put the tax free element of her pension into a deposit interest account as some paying close to 3%
 
Last edited:
You must log in or register to reply here.
Menu
Log in
Register