Maximising pension with 4 months to go

J

jaded68

Guest
Hi There. Im enquiring for a colleague approaching retirement in the next 4 months who will not receive the max state pension as he worked for 10 years before joining the state sector. Is he entitled to a contributory state pension for those 10 years up to 1973?

Would it be worth his while leaving before the deadline and taking up employment in the private sector where he could pay a full PRSI contribution?
Many thanks for any advice on this matter.
 
jaded68 said:
Is he entitled to a contributory state pension for those 10 years up to 1973?

Probably yes - get him to check on the DSFA website - it's a mine of information.

Would it be worth his while leaving before the deadline and taking up employment in the private sector where he could pay a full PRSI contribution?

Possibly - but he needs to find out how many credits he has accumulated, problem is that it takes DFSA about 6 weeks to send out that info.

Many thanks for any advice on this matter.
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jaded68 said:
Is he entitled to a contributory state pension for those 10 years up to 1973?.
Click to expand...

If he has the full 10 years stamps he should be entitled to the full contributory OAP. If he is a week short he may not be entitled to anything. He should contact the DFSA to confirm how many contributions he has been credited with, to see if he needs some private sector work to top up his contributions.
 
Jaded68,

It is likely that he will qualify for a pro rata contributory pension and as the previous posters have mentioned he needs to check this out with the DSFA.

This is off topic but may be beneficial for your colleague:

Assuming he started work in the public sector in 1973 he should now have approximately 36-37 years of service. If he has not done so already it may be worth his while contacting a good broker to see if it is in his interest to make a last minute contribution to an additional voluntary contribution (AVC) fund to make up the difference in his tax free lump sum of 3-4 years missing service.

This assumes that he has not already started an AVC, is not purchasing notional years and will not receive professional added years.

Regards,

Andrew

http://www.squaremile.ie
 
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