Contributory Pension + Voluntary Contributions ?

[Joebloggs]

My Dad is hoping to retire at 60 and has 40 years of Class A Stamps. Under current rules would he still need to make Voluntary Contributions of €500 per annum to ensure that he will receive the Contributory Old Age Pension when it becomes due ?

I know the Pension situation is currently under review and going to change over the next few years but he would like to know the current situation.

Thanks.

 

[ClubMan]

My Dad is hoping to retire at 60 and has 40 years of Class A Stamps.

40 years or presumably 2,080 should qualify him for a full contributory pension from age 66.

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

He could claim the equivalent of Jobseeker's Benefit from age 65 if necessary.

Payment for people who retire at 65

If you retire at 65, you may qualify for a benefit payment until you reach 66. The payment is similar to Jobseeker’s Benefit, but you don’t need to be looking for work or sign on at your local Intreo centre.

www.citizensinformation.ie

Under current rules would he still need to make Voluntary Contributions of €500 per annum to ensure that he will receive the Contributory Old Age Pension when it becomes due ?

No.

 

[Joebloggs]

Thanks for your reply ClubMan. Very helpful.

 

[bstop]

He should sign on for Prsi credits when he retires. Also if he can get 13 paid Prsi contributions in the year he reaches age 63 he could qualify for the Payment to 65 year olds. 13 weeks of part time work would suffice once he earns at least 38 euro per week.

 

[ClubMan]

He should sign on for Prsi credits when he retires.

Why? Doesn't he already have the 2,080 required under the Total Contributions Approach to qualify for a full contributory pension at 66?

 

[bstop]

Read the qualification criteria for the over 65's payment and you will understand why.

 

[noproblem]

Hard to believe that Voluntary Contributions are only €500 per annum. Money for ould rope as they say

 

[Conan]

Hard to believe that Voluntary Contributions are only €500 per annum. Money for ould rope as they say

€500 is the minimum. The actual rate is 6.6% of Reckonable Earnings in the previous tax year.

 

[Carnmore]

Hard to believe that Voluntary Contributions are only €500 per annum. Money for ould rope as they say

This will significantly increase in a future budget.

In the UK Class 2 voluntary NICs are £150 per annum.