Never worked in ROI, always paid tax in NI, what happens when i retire?

D

DLD

Registered User
Messages
20
Apologies if this is an open ended type of question, but I'm sure there is plenty of knowledgeable folk on here who might be able to offer some advice, even if it's to go and see a financial advisor.

I'm 55, have been living in Ireland since 2000.

However, all my work history has been in NI. Never paid any income tax in ROI.
I now have 35yrs contributions in NI, and qualify for a full state pension when I reach retirement.

I was wondering if it's wise to continue to paying into the UK pension, if there was an option to pay my remaining 12yrs of tax into the ROI side (if that's even possible) to qualify for a state pension in Ireland as well when I retire?

I'm not sure if you can get both pensions paid on retirement, even if I was to start working in ROI now? Or do you have one taken into account and the other tops it up?

I also have a private pension in the UK via my employer too.
 
Last edited:
Great question and loads of relevant information here.


It seems to be generally accepted that you can be paid both state pensions (ROI and UK) if you have paid into both. Unless it harms you in other ways eg giving up other social welfare entitlements I’d say it’s very worth your while switching over to the Irish PRSI system to build up a pension in the south. You will need at least 520 paid contributions to qualify for a pro-rata payment at age 66. This is the equivalent of 10 years working. It equates to 25% of the Irish state pension. 12 years will be slightly more.
 
  • Like
Reactions: DLD
So you have to work at least 10yrs in Ireland to qualify for any pension at all?
And if I was to pay 10yrs worth, I'd get 25% of the value of the full pension when I retire?

I'd work with others in the same situation too, and there's info doing the rounds that you only have to work 12yrs in Ireland to qualify for full irish pension too. Assume that's incorrect then?
 
Last edited:
DLD said:
there's info doing the rounds that you only have to work 12yrs in Ireland to qualify for fu irish pension too. Assume that's incorrect then?
Click to expand...

Historically that was the case, but from next year there will be a 10 year phasing out of that entitlement.

From: https://www.gov.ie/en/publication/9...e-pension-contributory-what-you-need-to-know/

A fairer method to calculate your State Pension (Contributory)​

From January 2025 there will be a 10-year phased removal of the Yearly Average Method, which means that all pensions will be calculated using only the Total Contributions Approach (TCA) by 2034.

During the 10-year transition period, pensions will be calculated using two methods:
  • the first method will use the full TCA approach
  • the second method will, starting in 2025, calculate what your pension would be under the existing Yearly Average Method. The pension rate of payment will then combine 90% of this yearly average rate with 10% of the TCA rate. The proportion accounted for by the Yearly Average Rate will then reduce by 10% over each of the subsequent 9 years until the pension calculation is fully based on the TCA method only.
 
DLD said:
if there was an option to pay my remaining 12yrs of tax into the ROI side (if that's even possible) to qualify for a state pension in Ireland as well when I retire?
Click to expand...
Can you easily take up employment in the Republic for the next ten years? Or self-employment?

Do you have any rental property in the Republic? Or investment income >€5000? If you do you will pay Class S PRSI and get 52 annual PRSI contributions.
 
  • Like
Reactions: DLD
I'm in a job in NI I have no plans to leave, see myself remaining in that until retirement.

No rental property in ROI.
 
DLD said:
I'm in a job in NI I have no plans to leave, see myself remaining in that until retirement.

No rental property in ROI.
Click to expand...

According to Gov.ie, regardless of any other methods of counting PRSI contributions....

"To qualify, you must have:
  • entered insurable employment before you turn 56 years of age"

If you have no ROI income from any source on which you paid PRSI at Class A or S then you don't qualify for a ROI State Contributory pension.
 
redstar said:
"To qualify, you must have:
  • entered insurable employment before you turn 56 years of age"
Click to expand...
I think it’s a bit broader. Can include self employment, rental profits, or investment income.

For example if the OP had small self employment which generated €5,000 a year in profits he would pay €500 Class S PRSI and could accumulate 520 credits by 66.
 
  • Like
Reactions: DLD
Is it not the case that working in Northern Ireland will subject you to National Insurance contributions which will preclude you from being able to pay PRSI contributions, even if you did have Republic of Ireland investment or rental income?

From the link below:

"When working in the CTA, you pay into only one state’s social security scheme at a time and are entitled, when in the other state, to the same social security rights, and are under the same obligations, as citizens of that state."

The Common Travel Area and social security benefits

There is a social security agreement between the UK and Ireland allowing existing reciprocal social security rights for UK and Irish citizens (and for certain family members and surviving family members) under the Common Travel Area (CTA) arrangements and law of the European Union to be...
www.nidirect.gov.uk www.nidirect.gov.uk
 
  • Like
Reactions: DLD
Kev1964 said:
I wonder how you thought you might be able to qualify for an Irish (ROI) state pension so?

if you search on Gov.ie you will find how to qualify for the state pension.
Click to expand...
I was under the belief that cross border workers used to be able to pay tax on whichever side of the border they wanted to? Or indeed both (dual taxation).

Now that might have been many years back and maybe isn't a thing any more, but I thought that maybe there might have still been a mechanism in place where I could start to pay taxes to the irish government? When I think about that, paying tax to Dublin for work I do in NI, it doesn't sound right, I admit that.

Final question, so if I was to start working in Ireland when I hit age 58, I'd not qualify for any irish pension?
 
You must log in or register to reply here.
Back
Top