Shortfall due to rise in State Pension Age

[Ragwort]

As a Public Servant recruited post 1995, I am paying Class A PRSI. This demands a larger contribution than my pre-1995 colleagues; the basis for this difference is that I will be entitled to a contributory state pension on retirement, which will make up for a proportionately smaller employer pension.

I will be obliged to retire at age 65, but because I was born in 1962 I will not be entitled to the state contributory pension until I am 68. So for three years I will be caught in a situation I am receiving a "reduced" pension, but will not be getting anything to make up for this reduction.

Am I correct in my reading of this, and if so surely it is an anomaly?

 

[Protocol]

Yes, correct.

Already the SP age has been increased to 66, and people who must retire at 65 are expected to sign on for 9 months JSB, i.e. claim to be unemployed.

See FAQ 16 here:

http://www.welfare.ie/en/Pages/Qualifying-for-State-Pension-Contributory.aspx

 

[Protocol]

Note that as a PS, you may be entitled to a supplementary pension until the SP kicks in.

Do a search for it.