contributory pension - adult dependant

Discussion in 'Welfare and state benefits' started by shweeney, Sep 13, 2018.

  1. shweeney

    shweeney Frequent Poster

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    Assuming I qualify for the full rate pension (and the pension still exists in 20+ years time and all the other caveats), I can claim for my wife as an adult dependant.

    But she has some PRSI contributions in her own name from before our kids being born - possibly not quite the minimum 520.

    As I understand it if she were to clock up a small number of extra contributions and go past the 520 figure, she would qualify for the minimum contributory pension in her own right (currently €97) which would then prevent her being an adult dependant (currently €218). So from a pension point of view, is she better off never working again?

    OK, if she went back to work full time for the remainder of her working life she would eventually qualify for the full rate pension, but it seems a bit of an anomaly that people who have worked and contributed could find themselves with a smaller pension than those who haven't, or have I missed something (I'm also assuming she would not qualify for the non-contributory because of my income).
     
  2. noproblem

    noproblem Frequent Poster

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    Are you saying that people and in particular women who decided to remain at home and all that entails have not contributed?
     
  3. Monbretia

    Monbretia Frequent Poster

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    Assuming all stays the same she could opt for the adult dependent rather than take her own contributory one but the adult dependent one is means tested so if she had any other assets they would come into play whereas the contributory one would not be means tested.
     
  4. Black Sheep

    Black Sheep Frequent Poster

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    Do you think we will still have qualified adults in 20+ years time?
     
  5. Monbretia

    Monbretia Frequent Poster

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    Who knows! That's crystal ball territory :)
     
  6. Black Sheep

    Black Sheep Frequent Poster

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    Being old in good health with comfortable pension can be a very happy place to be. That's my goal, travel, do all those things I hadn't time to do while working so I wouldn't be taking the risk of being a dependent.
    I don't wish to be a poor pensioner, just a happy one enjoying the best quality of life I can have
     
  7. Andyrob

    Andyrob New Member

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    Last edited: Sep 17, 2018
    Your wife can earn up to 100 euro a week (e.g. from working) and still get the full 218 euro IQA or indeed earn up to 310 euro a week and get a reduced IQA - but as you highlight she cannot claim a state contributory pension in her own right as well. So as I understand it she is better off as you suggest getting an IQA via your contributory pension.

    Oddly a UK (or other non Irish state pension) could be claimed at the same time as an IQA but not an Irish contributory one!

    Under the new UK state pension introduced in 2016 there is no equivalent scheme to the IQA nor a widows pension - and nor do you inherit part or all of your husband's pension when you die. I can't believe it will be that long before Ireland follows. It seems to make no sense for example that a multi millionaire receiving a contributory pension gets up to an extra 218 euro a week for his wife via the IQA (assuming all the assets are in his name bar their family home) - and they probably had hired help to clean the house and look after the kids! Its 2018 not 1948.

    Of course your wife could pay voluntary contributions and then get a pension in her own right when she retires - just in case the IQA is abolished.
     
    Last edited: Sep 17, 2018
  8. Bronte

    Bronte Frequent Poster

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    Doesn't the wife have 'credited' contributions from being a stay at home mother. The OP should enquire off the pensions office her records and then ask them how he/they can top her her pension to get a full contributory one.
     
  9. orka

    orka Frequent Poster

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    I don't think it will be possible to make voluntary contributions if it is more than a couple of years since she last made paid contributions.
     
  10. shweeney

    shweeney Frequent Poster

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    Easy tiger! we're talking about PRSI contributions here, which she has definitively not made since she quit her (PAYE) job.

    that's interesting - so if she qualifies for both she can claim whichever is the most beneficial?

    They're not credited contributions as such - if you're in receipt of child benefit then years spent outside of the workforce up the the youngest child's 12th birthday are discounted from the average contribution calculation. This is called the Homemaker's Scheme.

    Yeah - I though she could make voluntary contributions but looking into it, it seems not.

    Thanks for the replies folks - it's likely she'll return to work as the kids move onto secondary as the benefits of working for the next 20+ years outweigh any possible pension benefit, but it still seems a strange anomaly (though maybe not if @Monbretia's information is correct).
     
  11. Monbretia

    Monbretia Frequent Poster

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    Yes she can opt for whichever is more beneficial to her.