Use AVCs to retire at 60?

[redstar]

The DSP will stick to the letter of the law. Technically, you are still required to be actively looking for work but don't have to engage with the activation process to assist with getting back to work from age 62

From https://www.citizensinformation.ie/en/social-welfare/unemployed-people/older-jobseekers/


And also ...

"Note that to qualify for either Jobseeker’s Benefit or Allowance you must be genuinely seeking work and be available for full-time employment and these conditions continue to apply to all jobseekers."

 

[S class]

Thank you S class. I've been reading your excellent contributions re. Job Seekers Benefit, BP65 eligibility and Rental Income and also the relevant gov.ie links posted by Freelance.
Your post in "can-a-person-with-rental-or-investment-income-over-7500-euro-per-year-qualify-for-65s-benefit" referred to 2 employments. What if there is an ARF and rental income?

I currently have approx. 1660 Reckonable Contributions.
I have 2 rental incomes with my wife:-

1. €800 currently tax free per month for a Ukrainian couple (ARP) so say €1600 pm taxable in the future when ARP ends.
2. £800 GBP per month from the UK, make returns to Inland Revenue but pay tax on it here.

If I was to stop work voluntarily at say 63, due to stress say, assuming my current employer (2) allowed me to 'retire' ie tax free lump and ARF on with 4% per year. The 4% would be well over the €5000 per year.
Could I qualify and then re-qualify (13 weeks working) for JSB (9 months JSB each time) so that I'm on Job Seekers Benefit when I hit 65 and can continue until I'm eligible for the state pension.

ARFs are classed as pensions when applying for JB or BP 65.
Investment income (which includes Rental, share dividends and bank deposit interest) is classed as self employment, (so an extra employment) when applying for JB and BP 65. If the total of these is over 7500 euro per year this must be subsidary employment in order to qualify for JB.

When you retire at age 63 from your current employment you will qualify for JB as your Rental income will be classed as subsidiary. This is because both employments have run concurrently for at least 6 months and the subsidiary employment (rental) has presumably run for more than 117 weeks.

In order to requalify for JB, your new employment would need to run concurrently with your Rental income for at least 6 months. This is necessary to again get your Rental income classed as subsidary.

So you would need 6 months of new employment to requalify for JB.

You need to be carefull with the timing of this.

If you resign on the day of your 63rd birthday.

9 months of JB + 6 months of new employment would take you up to 9 months short of your 65th birthday. You could then cease and qualify for 21 months of JB up to age 66.

All of this is based on your share of the Rental income being over 7500 euro per year.

It is also based on the current rules for JB staying in place.
The new pay related JB is starting next April. The rules for this are different to the current system.

I don't know if the existing system will continue to run alongside the new pay related system.

 

[S class]

you are still required to be actively looking for work but don't have to engage with the activation process to assist with getting back to work from age 62

This is correct.

In practice DSP are unlikely pursue a person over 62 to take up employment.

 

[S class]

was advised recently that as long as you have a minimum weekly earning of €38 and pay class A PRSI on this income for a minimum of 3 months (13 weeks) that you become eligible again for JSB for a further 9 months and that you can "rinse and repeat" until you reach 65.

This will work provided that you don't have a second employment of greater than 7500 euro per year.