One example is that I've been unable to source the revised table of benefits for the State Pension Contributary Average method. We have been told what the new full pension is but not the lower levels, as far as I can see anyhow. Maybe somebody else has been better able to track down this information?
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PECS will count for the same pension benefits as paid contributions, provided you already have the minimum of 520 full rate paid contributions and have not reached the 2080 level.Co-incidentally I was just enquiring about PECS myself this week. What I was told was for the year you began paying PRSI, if it was at any time after week 1 in the calendar year, then your PRSI record for that year will be topped up to 52. I forgot to ask if that‘s helpful just for qualifying for a state pension or whether it helps towards the pension amount.
For me as someone who (hopefully) will be able to claim the OAP at 66, it's most definitely not a good deal and I'd advise against anybody availing of itDeferring claiming at 66 doesn't look like a good deal for those who qualify for a full contributory pension at that age and can afford to retire, or am I missing something ?
I doubt very much this is going to happen in Ireland simply because the whole idea of these changes is to reduce the overall spend on state pensions and giving people an earlier retirement option even though the overall pay-out might be less then the normal pension it might actually increase due to the number of people availing of itI'd have liked to see flexibility in the other direction also. I intend to retire @ 60 and will have 2080+ stamps before then. I'd like to be able to draw an actuarially reduced contributory state pension @ 60. Methinks that such an option could make early retirement a live prospect for many.
Yeah I will have by my reckoning ca. 39 years of contributions when I hit 66, but as you say they may disregard the contributions made in my 66th year (though hopefully that anomally will be banished with these changes anyway). I am currently a voluntary contributor already and have been for a few years now as I am no longer an employee. I have no remaining gaps to fill that I can fill at this stage.Being just shy of 2080 at age 66 is a very strong position to be in. Depending on what “just shy” means it may mean you can ignore the average method. This simplifies matters significantly. If you know or forecast what the exact total of PRSI contributions will be then your pension will be a pro-rata amount based the full notional pension amount, currently €277. In practice that means divide €277 by 2080 and multiply by your number of PRSI contributions at age 66. That’s your weekly pension amount based on current rates and rules. One word of caution…. I think I read somewhere that PRSI contributions in the year that your claim your pension are disregarded. Small impact if born in January, bigger for December.
Co-incidentally I was just enquiring about PECS myself this week. What I was told was for the year you began paying PRSI, if it was at any time after week 1 in the calendar year, then your PRSI record for that year will be topped up to 52. I forgot to ask if that‘s helpful just for qualifying for a state pension or whether it helps towards the pension amount. Maybe someone on here knows. In any event it’s something that happens automatically when you claim your pension and will not appear on any PRSI statement that you ask for.
So what else can you do to fill in gaps to try to achieve 2080 contributions? If there are gaps from 2018 calendar onwards you have until 31.12.23 to submit an application to pay voluntary contributions for that year. In general you can go back 5 years for this tactic.
There is also the option of credits for home caring, etc but I know less about how you apply for them.
As you say deferring your COAP beyond age 66 is yet another way but do your sums so that it’s beneficial to do this. Sacrificing a yearly benefit of €13/€14k for the benefit of an extra few hundred euros a year needs to make sense.
I’m happy to be contradicted on any of the above as I am only now trying to understand the same question you are.
Occupational pensions are class M Prsi and this is zero rated. No Prsi is actually paid.Slightly off topic question.
If you’re under 66 and in receipt of an occupational pension, will you be liable for PRSI on it from January ?
If the same rules apply at your retirement time, you could defer yourYeah I will have by my reckoning ca. 39 years of contributions when I hit 66, but as you say they may disregard the contributions made in my 66th year (though hopefully that anomally will be banished with these changes anyway). I am currently a voluntary contributor already and have been for a few years now as I am no longer an employee. I have no remaining gaps to fill that I can fill at this stage.
It's very tight, hence it would be advantageous to know if I will be entitled to PECs (especially seening as I started working before I was 16, though not full time) and if the contributions paid in my 66th year will count (I was born in late November so this could work against me) before I either apply for the COAP or defer and continue to pay the €500 for another year or two. I suspect that deferal will not be a good idea as I am forgoing the 13k a year and that as you say takes a long time to claw back. I think I'd probably prefer the 38 or 39/40ths of the full pension from my 66th birthday.
Still I have quite a few years to see how this all plays out. I'm only 45.
Occupational pensions are class M Prsi and this is zero rated. No Prsi is actually paid.
This won't change after January 2024.
Thanks S class.Occupational pensions are class M Prsi and this is zero rated. No Prsi is actually paid.
This won't change after January 2024.
Yes. Anybody with an ARF who defers will continue to be liable for Prsi beyond age 66.Just to complicate things, if someone chooses to have their occupational pension paid via an ARF, it's Class S.
That’s life expectancy at 65 (not 66) according to Eurostat.Life expectancy at age 66 is almost 19years for men and 22 for women.
Covid actually caused a slight fall in life expectancy.And these numbers are rising.
I turned 65 last October and I am no longer paying PRSI on my occupational pension. My contributory pension is due next year. Full contributions paid. By deferring my pension of €14404 for a year to get an additional €13 a week. It would take 21 years to recover.Slightly off topic question.
If you’re under 66 and in receipt of an occupational pension, will you be liable for PRSI on it from January ?
I tried to extract some information out of them several times over the last 10 years.That's a very disappointing attitude to have encountered. My experience of dealing by phone with a few different government departments has been largely positive where attitude is concerned. Admittedly the baseline has not been very high in the past. Knowledge seems to be slowly improving as is the quality and extent of online information on Gov.ie.
However there are still gaps where clarity is concerned. One example is that I've been unable to source the revised table of benefits for the State Pension Contributary Average method. We have been told what the new full pension is but not the lower levels, as far as I can see anyhow. Maybe somebody else has been better able to track down this information?
You probably know this already but for the sake of other readers, if you decide to have another go, I'd suggest approaching it slightly differently. Rather than asking for information specific and personal to you, ask a hypothetical question using your own data. For example, in relation to the over 65 payment, ask how does one qualify for a payment? Expand the conversation with questions that help you draw a conclusion that is likely to apply to yourself.
Sharing your de-personalized PRSI record here will probably produce several responses regarding your likely pension entitlement.
They won't deal with you when it comes to pensions. You don't get a hypothetical answer either when you present them a hypothetical case. Every effort from me over the last decades or so was fruitless.
It will be all decided when your pension application is on their desk- and ONLY at that time!
I think it’s a quite frankly ridiculous that the state cannot give contributors a best estimate of what their contributions will amount to.So I can fully understand the reluctance of the relevant Government Department to provide pensions forecasts for the same reason.
I think it’s a quite frankly ridiculous that the state cannot give contributors a best estimate of what their contributions will amount to.
For sure lots of caveats should be given but the state should do a hell of a lot better than it does today.