Pre 95 getting contributory old age pension

D

DingDing

Registered User
Messages
322
I was looking at this

I think it is possible to get a contributory old age pension with the following conditions.

1. You must have paid some A class stamps before the age of 55.

2. When you retire at 60, if you get employment the previous 2 years D stamp convert to A.

3. You need to get stamps between 60 (or when you retire) 66 - 70, These can either be A stamps through employment or S stamps by earning over 5,000 per year in an ARF or through rental income, or a mixture of both to a total of at least 5K, you pay 500 for these stamps (The person has a rental property and this would meet the 5K earning.

Can you earn S stamps when working in PS. If you go on a shorter working year and pay less stamps and also pay prsi on the rental income for the same year.

The amount of payment is based on the average number of stamps per year from when you first earned stamps to when you draw down the OAP. This could very much limit the payment.

Just wondering am I missing anything, or. have I got the wrong end of the stick.

I would be interested in any advisors who would help with this.
 
Have you seen this.

"S Class" provided some good information.

Pre 95 public sector workers and Prsi until age 70.

This category of workers may not be able to qualify for the contributory pension at age 66. If they don't qualify they will remain liable to Prsi on rental and investment income up to age 70. They will pay class K Prsi on their unearned income. This is charged at 4% and gives no reckonable...
askaboutmoney.com
 
Thanks ROS, Ill have a look later. I only just discovered my partner a Class D employee might be able to get a pension.
 
DingDing said:
Can you earn S stamps when working in PS. If you go on a shorter working year and pay less stamps and also pay prsi on the rental income for the same year.
Click to expand...
No.

In any calender year where you have any class A ,B, D or M Prsi your rental Prsi is converted to class K.

This means that if your are still in PAYE employment or drawing an occupational pension you won't gain any reckonable Prsi contributions on rental income.

If you have ARF drawdowns this situation changes.
The ARF drawdowns are always class S and when you have these class S, together with rental or investment income, this unearned income will then gain class S Prsi.

It is essential to have at least 5000 euro in combined income from your ARF + unearned income.

If you had rental income of 4900 euro per year + an ARF drawdown of 100 euro you would gain 52 class S contributions.

So basically if you retire early with AVCs and set up an ARF you are then in line to start gaining 52 class S reckonable contributions per year while sitting back and enjoying your retirement.

The ARF is the key to gaining class S.
 
Last edited:
One last question, when calculating the average contributions per yesr. Is the number of years from the year you gained the first stamp to when you get the pension. This could be up to 50 years. Is there any maximum on it.

State Pension (Contributory)

The State Pension (Contributory), previously called the Old Age (Contributory) Pension, is payable to people aged 66 and over who have worked and paid enough social insurance contributions.
www.citizensinformation.ie www.citizensinformation.ie
 
Last edited:
See here.

Information on pension calculations after age 66.

If a customer decides to defer their pension, will the years worked after age 66 be counted as part of their yearly average? If a customer chooses to defer their pension, the number of extra years worked will add to the divisor for the yearly average. (e.g. if a customer has 50 years cons at...
askaboutmoney.com
 
You must log in or register to reply here.
Back
Top