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SquirrelChaser
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Home economics, business studies, or accounting for example?
Deferring your State Pension (Contributory) - break even point is age 88
- Thread starter TheJackal
- Start date
It's actually 52.18 weeks per year or 29.09 fortnights, to account for 365 days per year and the leap year day
365 x 4 years + 1 leap day = 365.25 average over 4 years / 7 days per week = 52.18
None of these are leaving cert core subjects.
Great if somebody can do all these, but a core subject dealing with personal finance should be mandatory for all students.
Really? Where does the DSP outline that payment calculation method?
It doesn't matter if they say it or not, it's the way things are.
On average there are 52.18 Fridays in every year, so on average they are paying 52.18 times the weekly rate per year.
I suspect that some sections of society would view universal financial literacy with something approaching alarm
Plenty of talk about the cost of living crisis which is what this amounts to. Compensated for by extra double payments and various other payments from the state.
Incorrect information corrected below:
Deferring your State Pension (Contributory) - break even point is age 88
Practical mathematics. financial planning and all aspects of money handling should be taught in our schools as a seseparate subject Home economics, business studies, or accounting for example?
www.askaboutmoney.com
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Sorry, my mistake. Looks like you are correct. I thought that one had to inform the department before normal pension age that one was deferring the classroom but that doesn't seem to be the case.
Deferring your State Pension (Contributory)
You can start to claim your State Pension (Contributory) at any age between 66 and 70. This page explains who can defer (delay) their State Pension (Contributory), rates for different age groups, and how to apply.
www.citizensinformation.ie
Might there be an argument in favour of deferral if a person (who will be assessed using TCA) is a bit short of 2080 contributions but his or her spouse is a few years younger and would be entitled to a better survivor's pension for a statistically longer time or would that play no role in the calculation?
In my example I'm assuming the survivor's pension is better than any state pension the survivor would be entitled to. That will obviously not always or even generally be the case. My wife will likely never receive a state pension from Ireland as we live in Germany and she has never worked in Ireland but she will some day receive a survivor's pension from Ireland through my contributions. I'm going to be a little short of the 2080 at 66 but not yet exactly sure how many short. I hope the likes of pre-entry credits are less of a black box by the time I approach 66 and that I will know exactly how many contributions I have by then and can make an informed decision about deferral.
In my example I'm assuming the survivor's pension is better than any state pension the survivor would be entitled to. That will obviously not always or even generally be the case. My wife will likely never receive a state pension from Ireland as we live in Germany and she has never worked in Ireland but she will some day receive a survivor's pension from Ireland through my contributions. I'm going to be a little short of the 2080 at 66 but not yet exactly sure how many short. I hope the likes of pre-entry credits are less of a black box by the time I approach 66 and that I will know exactly how many contributions I have by then and can make an informed decision about deferral.
You can check how many PRSI contributions you have here
services.mywelfare.ie
Contribution Statement
<p>Request a statement of your history and record of contributions paid</p>
services.mywelfare.ie
Dr Strangelove
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Statistically men live shorter lives but are much more likely to generate a survivors pension as wives are on average younger and women live longer.
If there was a big age gap between you and wife in her favour I would encourage delay.
Maybe I am talking complete rubbish here as the conditions for qualifying for a survivor's pension seem to be totally different to a normal contributory pension, with only the previous 3 or 5 years being taken into consideration, in which case it would be irrelevant? I just assumed the survivor's pension was based off the contributory pension received by the deceased but having read a bit more that seems incorrect.
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You did not read careful enough. You only read about the qualifying conditions telling you the requirements how to get a foothold onto the scheme. The contributory survivors pension is not based on the previous 3 or 5 years. It is based on a variety of conditions to qualify for it at all- and furthermore on the amount of PRSI contributions paid or credited by either the deceased or the surviving person.
Check out this here and read to the very end:
www.citizensinformation.ie
One of the biggest differences to the standard contributory pension is the minimum amount of paid PRSI conditions- you only need 260 to qualify for a minimum payment- and not the 520 they ask for now.
There is also a means tested non contributory survivors pension around.
www.citizensinformation.ie
Check out this here and read to the very end:
Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
A Widow's, Widower's or Surviving Civil Partner's contributory pension and related social welfare benefits may be payable if either the deceased person or their spouse/civil partner has enough PRSI contributions.
www.citizensinformation.ie
One of the biggest differences to the standard contributory pension is the minimum amount of paid PRSI conditions- you only need 260 to qualify for a minimum payment- and not the 520 they ask for now.
There is also a means tested non contributory survivors pension around.
Widow's, Widower's or Surviving Civil Partner’s (Non-Contributory) Pension
The Widow's, Widower's or Surviving Civil Partner’s Non-Contributory Pension is payable to widowed people or surviving civil partners without dependent children who do not qualify for a contributory pension and who pass a means test.
www.citizensinformation.ie
This document says the following:
Widow’s, Widower’s or Surviving Civil Partner’s Contributory Pension
To get your rate of payment, we first calculate your Short Yearly Average. If this is 39 PRSI contributions or greater, you will qualify for the maximum rate for
this pension. If it is below 39, we calculate your Long Yearly Average. If this is 48 or greater, you will qualify for the maximum weekly rate. If it is 47 or less, you will qualify for a reduced rate of payment.
My bold. What is the short yearly average?
Widow’s, Widower’s or Surviving Civil Partner’s Contributory Pension
To get your rate of payment, we first calculate your Short Yearly Average. If this is 39 PRSI contributions or greater, you will qualify for the maximum rate for
this pension. If it is below 39, we calculate your Long Yearly Average. If this is 48 or greater, you will qualify for the maximum weekly rate. If it is 47 or less, you will qualify for a reduced rate of payment.
My bold. What is the short yearly average?
AI says the following:
"The "short yearly average" in the context of a Widow's, Widower's, or Surviving Civil Partner's Contributory Pension, refers to the average number of social insurance (PRSI) contributions paid or credited in the 3 or 5 tax years before the "relevant date". The relevant date is either the date of the spouse's death or the date the spouse reached 66, whichever is earlier. A yearly average of 39 or more contributions typically qualifies for the maximum pension rate."
This means that your above statement is indeed correct in certain cases.
It all depends on the cases' exact special circumstances.
The relevant date is another important corner stone of the sheme.
"The "short yearly average" in the context of a Widow's, Widower's, or Surviving Civil Partner's Contributory Pension, refers to the average number of social insurance (PRSI) contributions paid or credited in the 3 or 5 tax years before the "relevant date". The relevant date is either the date of the spouse's death or the date the spouse reached 66, whichever is earlier. A yearly average of 39 or more contributions typically qualifies for the maximum pension rate."
This means that your above statement is indeed correct in certain cases.
It all depends on the cases' exact special circumstances.
The relevant date is another important corner stone of the sheme.