What are the required level of stamps?
thanks for clarifying that Groucho.It's the latter.
In the Irish Times on Monday a figure given by Cliff Taylor was that the "Pension Commission suggested that the annual increase ... would be in the region of 4 per cent annum" with an example of retiring at 66 on 253.30 or 67 at 263.00. So recouping it in your early 90s rather than late 80s.Hard to evaluate this until the numbers are published. As it stands I can't see it being of much help to anyone except those who won't have 40 years PRSI at 66. If I make it to 66, I should have over 40 years PRSI by then. If I'm to defer to 67, then I'm forfeiting about €13,000 pension for that year. I'd want an increase of about 10% on the rate of pension from 67 to make that look attractive to me. I wouldn't be at all interested in being told that I'd need to live into my late 80s before I can recoup the €13,000. Somehow I doubt that the increase in pensions offered in return for deferring will be within an ass's roar of 10%.
To be clear , you need at least 520 paid contributions to get a minimum State Pension. To get a full State Pension you need 40 years of contributions (2080 contributions) or an average of at least 48 contributions per annum over your history in the PRSI system.The entry eligibility level for the State Contributory Pension is 520 paid reckonable contributions. (i.e. 10 years contributions)
In the Irish Times on Monday a figure given by Cliff Taylor was that the "Pension Commission suggested that the annual increase ... would be in the region of 4 per cent annum" with an example of retiring at 66 on 253.30 or 67 at 263.00. So recouping it in your early 90s rather than late 80s.
Yes I read Cliff's article and it made me laugh as to how unappealing the current suggestions are. And that's entirely separate from the "bird in the hand" aspect that an extra €13,000 (for each year) is likely to be far more valuable to you when you're in your mid-60s than in your 90s.
The whole thing smells like an attempt to be seen to be "doing something", rather than a sincere attempt to solve an issue.
It's a proposed option that may suit a limited number of people - including, as it happens, my wife who won't have reached the magic 520 reckonables by age 66! It's not intended to be a 'one size fits all' solution.
With only 10 years of a contribution history, the likely State Pension will be 40% (still generous) based on the Total and Average calculation model. But if the Total Contribution Approach was adopted (as previously promised), then the pension would be 25% (10/40ths).Even the minimum pension entitlement after just 10 years prsi contributions is very generous because the minimum pension is not 25% of the full state pension (even though that requires 40years of contributions ) . Even with 10 years contributions you still get the majority of the full state pension. That's a great deal.
How will this be all financed probably ireland hits another financial crisis in the future and next time they will be forced to cut the state pension or allow high inflation to erode its value
I'm happy for your wife but this is only going to suit a small cohort of people with circumstances like hers. Your wife's example doesn't do anything to solve the initial problem, which is the ever-increasing cost of the State Pensions. If anything, the example of your wife is an additional cost.
It's certainly not the "radical shake-up" that was originally trumpeted.
What happens if you only have 520 contributions made? Does that mean you only get €126.70? Does it mean that you'd be better off on the non-contributory pension?The entry eligibility level for the State Contributory Pension is 520 paid reckonable contributions. (i.e. 10 years contributions)
But to get the full Contributory Pension, one needs a total of 2,080 reckonable contributions (paid or credits).
What happens if you only have 520 contributions made? Does that mean you only get €126.70? Does it mean that you'd be better off on the non-contributory pension?
Ah I see what you mean. It's an average from the first time you are registered so for some they might be better off because they would start later. Would that be taken from the first full (52 contributions in the year) or from the first time you made contributions?Under the present system, that would depend on how many contributions you have on average from the date you first started paying PRSI.
And the Pensions Commission proposal is that PRSI should continue to be payable after age 66 in order to finance the unsustainable State Pension. But perhaps SF will solve the financial problems by watering their "money tree".But if that was there strategy to get everyone on auto enrolled and then reduce dependence on state pension, why did they stall so long on auto enrolled.
Surely they should have been pushing to get that in place years ago then?
Maybe it will all only become evident after the next financial crisis how pensions will be dealt with long term.
Todays workers will be enraged when they are paying increased prsi contributions to pay for Todays welfare recipients while in the future getting much less benefits themselves
It seems odd that folks could be paying PRSI on the State Contributory pension.And the Pensions Commission proposal is that PRSI should continue to be payable after age 66 in order to finance the unsustainable State Pension. But perhaps SF will solve the financial problems by watering their "money tree".
It seems odd that folks could be paying PRSI on the State Contributory pension.
It really annoys me when Governments make important policy announcements without working through any of the details.