Do I need to return to work for a contributory pension?

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susanmcnamara70

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I am age 54, married, with post -graduate qualifications . I haven't worked in 24 years . I have 452 reckonable contributions and 131 reckonable credited contributions for pension. I have 20 years of home carers tax credit. I have been a foster carer for the last 17 years. I have 4 years of carer's allowance and expect to be on this allowance for another 2 years. I always intended to return to the work force but my latest foster child developed medical needs that needed me to be on call 24/7. I am now worried about my pension. The foster child's needs have stabilised and my husband can reduce his working hours and provide cover . I have been told that I need to earn 68 credits to reach 520 reckonable contributions , which would equate , at a minimum, to working one day a week for 18 months. Is that right ?

Seventy five percent of a contributory pension would suit me grand. We won't pass the means test for a non-contributory pension and some day, hopefully far away, I will inherit a modest sum (lots of siblings). Would any one have any advice? Thanks in advance
 
You need 68 paid contributions to reach the 520 minimum paid contributions level.
You only need to earn a minimum of 38 euro per week to gain 1 paid contribution for that week. You would only need to work a few hours a week to achieve this.
Make sure that you have earnings of at least 38 euro in each separate week to ensure you gain the maximum level of contributions.
When you reach the 520 paid contribution target your credits will then count towards your pension. A maximum of 20 years (1040) credits are allowed.
If you continued this level of work beyond reaching your 520 target you could increase your pension to 100% contributory pension.
If you decide to cease working after reaching your 520 target you should continue to sign on for credits.
The extra credits would not enhance your pension amount but would allow you to qualify for treatment benefits and also assist you to qualify for 65s benefit. You would then just need 13 weeks paid contributions to qualify.
 
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Not sure are you eligible to join Voluntary Contribution Scheme to pay for the lost years?

If you are within 5 years (60 months) after your youngest child reached 12 (if youngest child is 17 or less) then you are eligible to apply to join the Voluntary Contribution Scheme and pay for missed years at €500 per year. In lieu of needing to go back to work.


That's the situation for people receiving Child Benefit and Home Carer's Tax Credit. Not sure about Foster mother's situation.

After your youngest child reaches age 12 you no longer get a 'stamp' for PRSI/pension contributions.

ALSO, be aware with part-time work that the pattern of the day the 'stamp' is given can vary week to week.

Part-time work and social insurance (PRSI)

This page explains how part-time work can affect your PRSI contributions.
www.citizensinformation.ie www.citizensinformation.ie
 
sadie said:
Not sure are you eligible to join Voluntary Contribution Scheme to pay for the lost years?
Click to expand...
Susan cannot make voluntary contributions as she doesn't have the 520 paid contributions required to qualify as a voluntary contributer. She could make voluntary contribution after she reaches the 520 paid level, if she did not want to continue in part time employment.
If she decides to cease working she can claim class A credits alongside making voluntary contributions for the reasons described in post #2.
 
Thanks S class . You are right . I need to reach the magic 520 paid contributions. Foster carers are volunteers, we get an allowance to meet the child in care ‘s needs . We are not eligible for paid credits . When I started fostering , it was a requirement to stay at home and be available for extra medical, social worker, access appointments etc . This has changed recently as foster carers have realised they are opening themselves to old age poverty as they do not earn any pension credits . Some children in care develop significant issues and/or medical needs , which warrant a return to work difficult . Even if you are awarded carer’s allowance it would be impossible to reach the new ‘20 years long term carer’s pension scheme’ as the child in care ages out of the system at 18.

Sadie , your point about being careful about part time work and PRSI contributions is very helpful, thank you.

I just wished I knew someone who would like to work a 4 day week and would train me to work their 5th day . I have kept up with my computer skills . I don’t even know where to start .
 
You could get started by using your carers skills.
If you get 3 or 4 hours of paid home or child care employment per week you would get back into the Prsi system. There is a general shortage of home care workers. You could probably get hours that suit you.

The minimum wage for 2024 is 12.70 euro per hour.
3 hours employment would get you 38.10 euro and a paid class A contribution.
 
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S class said:
You could get started by using your carers skills.
If you get 3 or 4 hours of paid home or child care employment per week you would get back into the Prsi system. There is a general shortage of home care workers. You could probably get hours that suit you.

The minimum wage for 2024 is 12.70 euro per hour.
3 hours employment would get you 38.10 euro and a paid class A contribution.
Click to expand...
Good idea . Thanks for your help S class .
 
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