Should we be allowed share PRSI contributions with our spouse

5

5thwheel

Registered User
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With the new Total contributions approach (TCA) for the state pension.
What would the general consideration be if we were allowed share our PRSI contributions with our spouse, similar to sharing tax credits.
Our own position.
Started working in 1977 will have 2,510 contributions when I retire plus 5 years contributions self employed 260 contributions = 2770
Only need 2080 contributions for full state pension
My wife worked in the civil service and left when we had a family. I know she will get 14 years credits for Homemakers scheme. She returned to work in the private sector and will only have 460 contributions.
Would sharing contributions with your spouse be away forward?

2510 + 260= 2770
- 2080
= 690 contributions to credit to my wife.
 
The pension is based on the number of contributions one has. There could be lots of other systems. However there always have to be some rules. One could think the level of pension could be based on the level of prsi contribution. Or any other way.
 
Premos said:
One could think the level of pension could be based on the level of prsi contribution.
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It already is. It's paid pro-rata based on the number of contributions/credits if the 2,080 required for the full pension isn't reached.
 
5thwheel said:
Would sharing contributions with your spouse be away forward?
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And judges would have to apportion lifetime PRSI contributions in a divorce settlement. Very messy.

Homemaker’s scheme kind of takes care of this issue TBH.

Tax and benefits policy should provide moderate incentives to work and sharing of PRSI contributions blunts incentives a bit.
 
Premos said:
The pension is based on the number of contributions one has. There could be lots of other systems. However there always have to be some rules. One could think the level of pension could be based on the level of prsi contribution. Or any other way.
Click to expand...
Lots of countries have social security systems which provide benefits — particularly retirement benefits — of amounts that are proportional to earnings, which is pretty much the same thing. But they are very, very expensive; those countries tend to have massively high social insurance contributions.

Ireland has aggregate social insurance contributions (employer + employee) of 12.6%. This is pretty low by international standards:

France — 47.4%
Germany — 39.93%
Italy — 38.66%
Spain — 37.33%

Obviously there are other differences between the social security systems that help to account for this. But a very large part of it is that those countries provide pay-related retirement benefits and pay-related sickness/unemployment benefits. And there's no way around it; that costs a lot.
 
They kinda do already through the dependent adult part of old age pension. Which for over 66 is almost the same. If this was better then applying for pension on her own. If you pass before your wife she could apply for widows pension etc.
 
irbx said:
If you pass before your wife she could apply for widows pension etc.
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And if she passes before you, then you can apply for what is now described as the Widow's, Widower's or Surviving Civil Partner's Contributory Pension - although I suspect that in most cases, it's likely to be worth less than one's own.
 
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5thwheel said:
She returned to work in the private sector and will only have 460 contributions.
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Presumably your wife is pre 95.

She could get a pro rata pension with her 460 Reckonable paid contributions.

She could get extra Reckonable paid contributions if she defers her contributory pension beyond age 66. If she reaches 520 reckonable paid contributions she can get her contributory pension calculated using the YA / TCA methods. This will give her a larger pension.

You would need to calculate the break even time period as she will lose out on slightly more than 2 years of pension payments.

She can gain the extra Reckonable Prsi beyond age 66 from voluntary contributions or from employment.
 
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