Implications of new law on age 65 retirement

[LL????]

You will not qualify for BP65 as you have rental income in excess of 7.5k.

My wife has rental income in excess of this and we are jointly assessed. I don't have any rental income in my own name, will this preclude me from qualifying for BP65?

 

[S class]

No, your wife's rental income wont prevent you from qualifying.

 

[VInterested]

Hi, going back to the issue below:

It looks like the bill will be approved by cabinet today, where those with a contract of employment saying 65 is the age to retire will have that extended to 66 when the old age pension kicks in.

I am not sure how long after this step it takes for the legislation to be enacted?

there is a new bill signed as mentioned.

@ all, I would like to hear your thoughts on how this could affect the Occupational Pensions linked to the "old" contracts which end date is 65 years old as the legislation only talks about the contract with the employer not the contract signed with the Occ pension provider.

I asked the question to my Occ pension provider before this legislation was signed. AON confirmed that the scheme will close when an employee reaches 65 years of age independently of the agreement made with the employer to extend their contract or if you have left the company before hand.

- Do you think that the employee will be protected in preserving their current Occ Pension until the new retirement age? I am thinking about the % that the employer contributes into the EE pot.
- Could you be forced to close your Occ pension and retrieve your fund (ie buying an ARF) at 65 even when you might prefer to leave it till 66 (and up to 70) when you retire? I am thinking you might have different pots and want to manage them at different stages. Can the funds from previous employers will have an end date when you reach 65 or when you retire?

 

[10amwalker]

Hi, I received a decision from the Dept of Social Welfare in relation to my claim for Benefit Payment for 65 year olds. I was sent a supplementary form which I had to fill out and which I attached on one of my earlier posts.

I am not entitled to the payment.

Three reasons were given:
1. I did not have "13 Class A, H or P PRSI contributions paid in 2021, 2022, 2023, 2024 or 2025. "

2. I did not have " 39 contributions paid at Class A, H or P or credited in the year governing their claim ( 2023). " ( there is more information provided on this point) which I have omitted to keep it simple.

3. " A person does not qualify for Benefit Payments for 65 year olds if they are engaged in self-employment.
I have " a rent income for which you are liable for Class S Self-employed PRSI " so am " deemed to be engaged in self-employment.

The interesting aspect for me was that I have an ARF and as I only receive the 4 % mandatory amount per annum it was not taken into consideration.
I sought guidance from SW prior to filling out the form and was advised
"For the ARF, if you are just taking annual 4% and it is not fully drawn down, you can enter not fully drawn down and no amount is necessary."

I fully accept their decision.

I am now going to contact my occupational pension scheme and see what they have to say. Back when I joined the scheme it was assumed that 65 years of age would be the OAP start date hence my pension has been reduced this year.

I was on an annual pension of €10,500 (gross) since my 55th birthday.
I was 65 in March and now I receive €2,845 gross.

Has anyone gone back to a pension scheme on this issue ?

 

[elcato]

Three reasons were given:
1. I did not have "13 Class A, H or P PRSI contributions paid in 2021, 2022, 2023, 2024 or 2025. "

2. I did not have " 39 contributions paid at Class A, H or P or credited in the year governing their claim ( 2023). " ( there is more information provided on this point) which I have omitted to keep it simple.

3. " A person does not qualify for Benefit Payments for 65 year olds if they are engaged in self-employment.
I have " a rent income for which you are liable for Class S Self-employed PRSI " so am " deemed to be engaged in self-employment.

I believe 1 and 3 disqualify you on their own anyway. I qualify using 1 and 2 but will be disqualified unless I sell my BTL before D Day.

 

[10amwalker]

If I had of known that my pension would reduce when I reached my 65th birthday and just say I did qualify under 1 and 2 could I have put the rental income in against my husband's income when filling out Revenue Form 11 ? Would that have made a difference ?

This is theoretical ?

 

[Ruffian]

I am now going to contact my occupational pension scheme and see what they have to say.

Have you been in contact with them? This issue must have arisen before as there was no pension-type payment for age 65-66 in the years between the abolition of the Transition Pension (2014, I think) and the introduction of the over-65 in 2021.

 

[S class]

but will be disqualified unless I sell my BTL before D Day.

If you can get 6 months employment and cease this on your 65th birthday, you would qualify for Jobseekers benefit at full rate up to your 66th birthday.

Your rental self employment would be allowed as subsidiary employment.

Jobseekers Benefit over age 65 is exactly the same as BP65.

Can a person with rental or investment income over 7500 euro per year qualify for 65s benefit ?

No. However they could qualify for Jobseekers benefit at age 65. Basically the subsidiary employment rules for Jobseekers benefit are different to those for 65s benefit. Employment 1. PAYE employment Employment 2. Rental or investment income over 7000 euro per year. To qualify...

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