Contributory State Pension

noproblem said:
Have to agree though, for €500 per year you get a bloody great return. That's on the understanding you live a few years to enjoy it. Someone's paying for it even if I pay a bit myself.
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If they are to retire this year at 66, 2018
I agree if you are 45 at present there is a good chance people retiring in 2018 will still be alive by the time the 45 year old retires

Someone is going to have to pay tax to fund it we all know who pays the most tax in this Country,

The good news is they love paying tax to fund the above,
 
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You are all missing the point. When someone gets to 67 years or older they should have enough to keep the wolves from the door. Life is not fair and some people will work or pay more then others. If there is anyone to blame for a bad system is the FF & FG crowed trying to get the grey vote with and extra €5 a week just before election time.
 
gar32 said:
You are all missing the point. When someone gets to 67 years or older they should have enough to keep the wolves from the door. Life is not fair and some people will work or pay more then others. If there is anyone to blame for a bad system is the FF & FG crowed trying to get the grey vote with and extra €5 a week just before election time.
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I agree and thankfully we have the means tested pension which will take care of what you have outlined above,

Long term the state needs to have the means and be in a position to pay the people who paid in all of there working life along with the means tested pension for anyone in the above position,

We need to start ring fencing a % of the PRSI fund to make sure there is money to pay the 20/30/40 year old pension when the time comes to payout the first stage is everyone with an income should pay the same % of payroll in for There pension no matter where they work or what they do,

And the state should also put in the average % of payroll collected each year for each person they allow into the fund in other words if there are one million people paying into the fund and the state allow 100000 into the fund the state should put in 10% of total Payroll PRSI collected to Fund the 100000 extra people who will be allowed to claim state contribution pension when the time comes,

FF/FG are the same party so we never had a change of Government in this Country I voted FF for most of my life If FG get the state contribution pension sorted I will never vote for FF again. I would have voter FF first followed by voting FG next if I was not happy with FF I would switch to voting for FG first to be honest I got FF with a different name, the are the same party as FF up until now.

since around 2012 the state are charging prsi on unearned Income along with getting rid of the wage cap ,

If the state want to take 500 euro per year and allow a person into the system the need to top up the fund to what the average person payroll paid in to the prsi Find in that year,

If the state want to allow people into the fund without paying anything they need to top up the fund to what the average person payroll paid into the prsi fund in that year,

I am open to changing my view once there will be a fund to pay the 20/30 and forty something who see one sixth of there payroll go into the PRSI Fund,

By the way I am retired if FF/FG are allowed there will be no money to pay the state contributary or mean tested pensions it will not be in my life time but it will be in the 20/30 and 40 something life time,

That is the only point we are missing,

PS
The 5 euro the Government Gave in the last few Budgets had more to do with keeping the lid on the Lobsided PRSI system we have it was to keep the people who see one sixth of there payroll go into the PRSI Fund feel good looking after the goose who is laying the golden egg comes to mind the younger goose is going to get its head chopped off once she cannot lay enough eggs for the piggy backers,


While allowing much stronger lobby groups get the same pension without having to pay the same amount into the Fund,
 
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According to todays announcement you will need 40 yrs contributions to get the full pension from 2020.
 
RETIRED2017 said:
We need to start ring fencing a % of the PRSI fund to make sure there is money to pay the 20/30/40 year old pension when the time comes to payout
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This is delusional. As I have said before there is no "PRSI fund" except in name only. Ring fencing would imply that there is money building up in the fund each year, and that current pensions are being paid out of decades old investments. That simply isn't the case. There is no money in the pot for anyone other than what goes through the current account annually (and a very modest recent surplus).

EDIT: I see today's new Pensions Report says it too -- the State Pension scheme "is premised on the principle of social rather than personal insurance and operates on a Pay as You Go (PAYG) basis meaning that today’s pensions are not funded by past contributions made by today’s pensioners but are instead funded by the taxes and social insurance contributions of today’s workers. "

RETIRED2017 said:
the first stage is everyone with an income should pay the same % of payroll in for There pension no matter where they work or what they do,
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And you still won't explain why you think everyone should pay the same percent. If you're going to give out about the people who didn't pay enough contributions to justify their pensions then I'm going to complain about the people who paid their ten percent but still only paid a tenth of what I paid. How about ring fencing my contributions so I get ten times more than the average person? (Not that I think that should happen, but seeing as you clearly don't think people should get paid pro rata I don't see how you can complain about people with minimal contributions).
 
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Yes it seems 40 years contributions are required shortly. The debate changes from having 10 years contributions to get you a full pension to recognising those with 40 years required to get a full pension,
 
Palerider said:
Yes it seems 40 years contributions are required shortly. The debate changes from having 10 years contributions to get you a full pension to recognising those with 40 years required to get a full pension,
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A person does not get a 'full Pension" with 10 years contribution. You get a percentage of a full pension which works out at 83 euro per week approx.
 
Yes, it is currently possible to get a full CSP after ten years work, although it would be unusual.
 
I think it's a great idea people who are self employed can join the forthcoming auto enrolment pension scheme .
 
RETIRED2017 said:
Unless you are on a very high salary if you max out your age limit tax break relief will work out around 30% in most cases today,
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Ohh, I never actually realized that, I was always assuming the same flat relief rate. So for most people, they should use something like the following formula for the higher rate of relief for AVCs:
(CurrentSalary - HigherMarginalTaxRate=34,550 <e.g.: 2018, single>) * AgeRelatedReliefRate <e.g.: 20%, for ages 30- 39> - RegularEmployeePensionContribution.

For example, using the following fictional numbers: a single 35 year old on a 100k salary that contributes 500 a month (6k a year) in his regular pension contributions through his employer (assuming here some matching is done by the employer - though the employer contribution does not count to the relief limit AFAIK) can get 40% relief on AVCs on the following amount:

(100000 - 34550) * 0.2 - 6000 = 7090. That is thus the maximum amount he can put in AVCs, after which the relief rate drops to 20%.

Is the math above correct? (If so, I probably need to revise my AVC rate down a bit..)
 
RMGC11 said:
(100000 - 34550) * 0.2 - 6000 = 7090. That is thus the maximum amount he can put in AVCs, after which the relief rate drops to 20%.

Is the math above correct? (If so, I probably need to revise my AVC rate down a bit..)
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No max he can contribute = .2*100,000-6,000=14,000
and 14,000 is far less than what he pays 40% on ( which on your numbers is 100,000-34550=65k approximately.)
so all the 14000 AVC and 6000 normal pension contribution gets 40% tax relief.
 
I am on invalidity pension I turn 66 on August 2018,also I get a allowance for my wife,will we both get a contributory pension automatically when I retire ,my wife turns 66 on May 2018 she does not have enough contribution to apply for her own pension.
 
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scottie said:
I am on invalidity pension I turn 66 on August 2018,also I get a allowance for my wife,will we both get a contributory pension automatically when I retire ,my wife turns 66 on May 2018 she does not have enough contribution to apply for her own pension.
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If your wife does not have enough contributions for a contributory pension, she won't get one automatically when you retire.
The options are for her to apply for a non-contributory pension, which is means-tested, or to stay as a qualified adult on your pension - whichever is more advantageous.
If she stays as a qualified adult on your pension, it will be paid directly to her (unlike Invalidity Pension which is paid to you on behalf of both of you).
 
Will my wife have apply for her state pension, even if she stays as a qualified adult on my pension.
 
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