I wonder if you could get around this creatively. Say retire on your 65th birthday and buy an annuity that pays out for just one year. Does such a product exist?If the above individual is paid €25,000 from an annuity purchased form a DC pension scheme, then she/he qualifies for the Benefit Payment for 65 Year Olds
You will get 52 S stamps if you have an ARF and have 12 drawdowns per year i.e. 1 per month. You do not need to pay 500 euro per year in Prsi to get the 52 S stamps. It doesn't matter how small each monthly drawdown is.@Freelance Seems unfair alright.
@bstop reading your various posts in this thread and others, and the answer to you Dáil question, does my understanding below seem right?
1. one can get 52 Class S PRSI stamps by drawing monthly from an ARF
2. with ARF distributions over €7500 one is viewed as being in insurable employment therefore it follows that with a drawdown of less then €7500 one would not be viewed to be in insurable employment
3. therefore a governing year ARF drawdown of over €7500 would be required if one wanted to meet this requirement: "Have paid 52 PRSI self-employment contributions at Class S in the Governing Contribution Year."
I had previously surmised that an ARF drawdown of €12500 might be required in the governing year, as that would result in €500 being paid in PRSI which matches the minimum PRSI required under the voluntary PRSI scheme.
Basically an S stamp is an S stamp it doesn't matter how you got it.Thanks for the reply, and I understand what you are saying. The answer to your Dáil question said that with distributions over €7500 one is view as being in insurable employment. The implication being that with drawdowns of less than €7500 one is not viewed as being in insurable employment. What I'm wondering is whether in your €83.33/month example the Class S stamps might not be viewed as PRSI self-employment contributions at Class S.
It does exist, but only if you die on your 66th birthday.I wonder if you could get around this creatively. Say retire on your 65th birthday and buy an annuity that pays out for just one year. Does such a product exist?
Occupational pensions are Class M PRSI (currently zero). That will neither qualify you nor disqualify you.If one retires early, say 60, and is drawing an occupational pension (over 7500/year) and, I think, paying class S PRSI on that, will that not disqualify one from receiving the 65's payment?
Yes, no problem getting the payment AND having an ARF. When I started my ARF shortly after I started getting the over 65 payment, I got a letter from the DSP saying that Revenue had informed them that I was getting a payment from Zurich Life. I then had to send a signed form back to the DSP to confirm that the payment was a pension and not employment (as if).Yes, I should have no problem with the PRSI stamps, I was just worried the ARF might disqualify me.
Thanks for the clarification.
Are your ARF drawdowns less than 7500 euro per year.Yes, no problem getting the payment AND having an ARF.
At that rate you should be OK with an ARF fund worth up to about 187.5K assuming you draw down 7500 euro as the imputed 4% per annum.Are your ARF drawdowns less than 7500 euro per year.
An ARF drawdown less than 7500 euro per year doesn't disqualify you for the 65s payment
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