negative interest rates are not the gift of the irish government but the ECB, they don't apply to Ireland anyway just to Germany , Netherlands and the Scandis. The tide is turning anyway on negative interest rates as the ECB started reining in its massive bond buying program lthis week as inflation is just around the corner.
Increase in State pension age to 67 should be delayed by seven years, report to recommend
- Thread starter ivannomonet
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time to plan
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It’s indoor work with no heavy lifting.
O I like that old chestnut been trotted out,
What about their big lump sum Parachute payment on losing their seat
For jobseekers benefit, your employer pays 10.75% and the employee pays 4% total of 14.75% from payroll to the Government and no guaranteed pension for the time worked, and if they lost their job through their own fault
wait 9 weeks before payment, is receivedA TD and employer pays a total of 4% of payroll to the government
and gets a big fat lump sum parachute payment worth more than jobseekers benefit and start a new job the day after, and wait for it a guaranteed pension that to the best of my knowledge retirement date will not be changing like the people seeing 14.75% coming out of payroll,
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I know Boxer Moran I have voted for him in every Election and will again if he runs for election,
You should have Googled Boxer Moran taxi first
There is a podcast of him talking after Budget 2019
(The Floating Voter 5 car Boxer Moran on The Budget)
I saw him dropping someone off at a shop in Athlone not long after the February 2020 general election,
remember Boxer was still a minister up until the 27 of June when the present government was formed,
so he had over four months to sort himself out
Boxer still got his Ministers Parachute payments and could get behind a taxi wheel the following day and not lose it
FF/FG/Labour made no provision(or protection) for people who lost their jobs on reaching 65 under the FF/FG/Lab increase in the pension age,
And the Deluded Credit/Blame SF for it not going through,
Right now FF/FG are caught with their pants down creating a makeup job for a 67-year-old collogue
while the left pensioners who had to retire at 65 to swing in the wind until the new contributory pension age kicks in,
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Workers face a series of PRSI hikes in the coming years to help fund a Government delay in increasing the State pension age, under new proposals.
Self-employed people will bear the brunt initially as they would see their contributions soar from 4pc to 11pc in the coming years.
The move would impact up to 331,000 people who are self-employed in the state.
Other employees will also take some of the pain from rising PRSI rates, although these would not kick in until the 2030s.
A confidential draft of the Pensions Commission’s report, seen by the Irish Independent, shows future generations of workers and employers will be hit by increases if its recommendations to fund the state pension system are adopted.
However, the reform package also comes with PRSI hikes and a state contribution to prop up the system. The self-employed would see the PSRI hikes first. Their rate would rise from 4pc to 10pc initially by 2030. It would move to a higher rate – that now stands at 11pc – before jumping another 2.4pc by 2040 and 0.1pc by 2050.
https://www.independent.ie/business...an-to-delay-raising-pension-age-40839408.html
Self-employed people will bear the brunt initially as they would see their contributions soar from 4pc to 11pc in the coming years.
The move would impact up to 331,000 people who are self-employed in the state.
Other employees will also take some of the pain from rising PRSI rates, although these would not kick in until the 2030s.
A confidential draft of the Pensions Commission’s report, seen by the Irish Independent, shows future generations of workers and employers will be hit by increases if its recommendations to fund the state pension system are adopted.
However, the reform package also comes with PRSI hikes and a state contribution to prop up the system. The self-employed would see the PSRI hikes first. Their rate would rise from 4pc to 10pc initially by 2030. It would move to a higher rate – that now stands at 11pc – before jumping another 2.4pc by 2040 and 0.1pc by 2050.
https://www.independent.ie/business...an-to-delay-raising-pension-age-40839408.html
galway_blow_in
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It's more than ample ,my mother lives on the state pension and saves more than fifty quid per week on it , its far higher than the UK rate
When you add in the extra benefits along with the 250 per week ,it's very generous
The self-employed pay around 26.5% of payroll in Austria
I think it is around 18% of payroll in Germany,
It is time to became good Europeans,
I perhaps would not use the adjective "generous", but the 248 per week is good, yes.
It is clear that many people save out of the pension. This is to expected, as many people have:
zero housing costs (rent/mortgage)
zero or very low transport costs
zero or very low healthcare costs
Several years ago, I had a chat with the civil servant in charge of all "non-con" pensions, that was the term he used.
He told me that one issue they had to deal with is many of the non-con pensions save each week out of their pension, and so build up savings that render them ineligible for the non-con pension!!!
therefore that is proof that the "non contributory" pension is too much yet the government is still going to go after the hardest workers the self employed to fund the deficit. The end result is that there will be less self employed people and more people claiming non-con pensions in a decades time
fistophobia
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If you only have unearned income, say its class S income...
would it be better to change to a different class, to avoid this shafting.
I reckon I have 32 full years stamps paid.
would it be better to change to a different class, to avoid this shafting.
I reckon I have 32 full years stamps paid.
I think lucky members of the class K PRSI club are effectively taxed for PRSI the close to the self employed - there is nil employer contribution. Possibly in the interests of fairness any changes for the self employed should apply to class K as well?
www.gov.ie
Class K1 = "Certain public office holders with an income in excess of €100 a week. The public office holders affected include the President, members of the Oireachtas and the judiciary, certain military judges, the Attorney General, the Comptroller and Auditor General and certain members of the European Parliament."
Personally I'd have no issue paying more for a eu style "pay related" state pension - as opposed to a pension that's completely out of my control.
For all my pension plans I count the state pension as 0 since the amount and the date I get it are out of my hands. People in europe do pay more - but unlike us have some hope of predicting what their "pay related" state pension will be.
| Weekly income band | PRSI Subclass | How much of weekly pay | Employee % | Employer % |
| Up to €100 | No contribution payable. Record under Class M | Nil | Nil | Nil |
| More than €100 | K1 | All | 4.00 | Nil |
PRSI Class K Rates
www.gov.ie
Class K1 = "Certain public office holders with an income in excess of €100 a week. The public office holders affected include the President, members of the Oireachtas and the judiciary, certain military judges, the Attorney General, the Comptroller and Auditor General and certain members of the European Parliament."
Personally I'd have no issue paying more for a eu style "pay related" state pension - as opposed to a pension that's completely out of my control.
For all my pension plans I count the state pension as 0 since the amount and the date I get it are out of my hands. People in europe do pay more - but unlike us have some hope of predicting what their "pay related" state pension will be.
Please note:
Social Insurance Benefits are financed by PRSI.
Social Assistance payments are means-tested and financed by general taxation.
So if we pay more PRSI, it goes to the SIF, and it is not used to finance non-con pensions.
However, as the State sometimes must use taxes to top-up the SIF, indirectly you are correct.
NoRegretsCoyote
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And when the SIF was in surplus it was returned to the Exchequer
People should really stop thinking about the SIF as being a real thing. The issue is much bigger than PRSI take and social insurance benefits.
Think about overall state capacity to pay for cost of ageing. All taxes and PRSI on the revenue side, all age-related costs on the expenditure side.
Yep. As a side issue, I was quite surprised when I received an additional PAYE "Age Tax Credit" of €245 in the year that I turned 65. Didn't want it, didn't need it, didn't apply for it, but it was a pleasant windfall all the same. But why should I get it?
If your only income is unearned income, then you can't simply change your PRSI class!
fistophobia
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Varadkar to oppose ‘massive’ rise in PRSI for self-employed
Fine Gael leader to line out against proposal designed to offset delay in pension changes
I know lots of people on here don't get it, but someday in the not so distant future the penny will drop,Varadkar to oppose ‘massive’ rise in PRSI for self-employed
Fine Gael leader to line out against proposal designed to offset delay in pension changeswww.irishtimes.com
FF/FG/and labor by not bringing Ireland social security system in line with what is normal throughout the EU
will long term damage Ireland future more than the most left-wing Government we could possibly ever elect,
It is sad to see the long term damage the main political parties are doing by not addressing the Prsi/pension Issue,
Lots of well off people who support FF/FG/Lab don't realize the burden will fall on them in the future,
FF/FG/Lab/greens have already raided private pension pots to shore up bad Government Decisions in the Past,
Don't forget FF/FGLab/Greens had no problem cashing out/raiding your pension pot at a low point in the market people close to retirement pension never recovering and then for good measure the same people got hit by an increase in the contributory pension age,
FF/FG/Lab are in for a shock if they think the people who supported them down through the years haven't noticed the unfairness in the PRSI System and will reply through the ballot box,
the tax systems they have in place lets them track most Irish peoples wealth and FF/FG/Lab/Greens and I suspect SF also will raid again the only difference is all Irish wealth will be included next time,
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As things stand, that would increase the marginal tax rate for the self-employed to 62%!!
Why would anybody bother working if they can only retain 38 cent in every earned euro above a certain level? Cue massive tax evasion…
You should investigate how it works in every other EU country that has a social security system the difference between PAYE social security rates and the self-employed as a % of payroll is a mere one of two % less,
My Daughter moved to Germany and then moved to Austria she is self-employed and pays 26.5% payroll into social security, which is one or two % lower than the total amount an Employer/employee pay into the social security in Austria,
When she was self-employed in Germany the % of payroll going into the German social security system was around 17.5% again it was around 2% lower than the total taken from payroll if you were in direct employment,
FG/Lab/Greens along with what is left of FF need to bring fairness into the PRSI system to have any chance of getting the changes in age increased which is driven mostly by the people who only see a total of 4% or less going into the social security system from there own pay packets,
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What is her marginal tax rate?
PRSI is just income tax under another name - it all goes into the same pot, the social “fund” is a fiction.