insufficient contributions for full state pension

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oldnick

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Apologies if this question already in previous thread.

Have checked that wife has only enough PRSI to get ca.40% of old age pension(i know its not called that now) when she reaches 67 -another 11 years time.
And maybe if the govnt keeps changing rules the percent will be even less.

I've been told that all she has to do is get a job which pays a mere € 38 weekly and this will suffice to give her the contributions that she will need to start building towards a fuller state pension.

Can one really earn only 38 euros a week in order to -depending on years worked - get a full state pension worth six times more ?

Must she be employed or can she be self-employed ? -in which case I'll send her out with a bucket and sponge tomorrow.
 

I know it's a serious post, but I LOL at this
 
Oldnick, Im not sure if you're clued into the new proposed arrangements for contributory state pensions. For anyone entering retirement after 2020, its proposed to change the system to a "total" contributions based system, replacing an average yearly contributions based system

As a minimum everyone will need 520 paid contributions to qualify for a minimum pension. For the maximum pension they will need the equivalent of 30 years contributions, paid or credited.
 
Yes, doctor, that's why i want her to get a bigger total- at present she has only 650 reckonable paid contributions (-as per social welfare list from buncrana which i requested).

This would give her only a percent of the total state pension -though ,when i phoned,nobody could give me precise percent, and the written info i see appears contradictory.

So , if she could increase her total by a few hours work a week over the next few years- roofing, fire-fighting,anything -it would seem a cheap and easy way to get the full state pension. Is it possible fior under forty euros a week paid employment?
 
Nick, I have no experience of it however it does appear, from reading the rules that this is the case. It does seem too good to be true......
 
Old nick

Basically, for 520 contributions, you are entitled to 1/3 (10/30) of the full pension
For each additional 52 contributions you earn a further 1/30

Based on 650 contributions, your wife has earned around 13/30 of the full pension, based on existing record.
If she works for the next eleven years, that should increase to around 24/30 = 4/5
of the full pension, or 80%.

It really looks like it will make a difference.
 
Thanks for that, so...
If she gets a job paying €38.00 weekly this would count towards state pension. Good.

Unsure whether this €38 can include income from self employment or rental income -class S. Can't find govnt source for stating that class S based on unearned income -e.g. rental- counts towards state pension contribution.
 
Unsure whether this can include self-employment -or the PRSI payments on receiving rental income.
Click to expand...
That's all good for pension purposes.
 
That's splendid. I hadn't realised that PRSI on rental income (and, i suppose, therefore any other unearned income like deposit interest ) counts towards the state pension.
Thanks Time and Dr Debt.

(So,wife doesn't have to seek paid employment in order to earn contributions towards state pension. Maybe I won't tell her that PRSI on rental income counts.)
 
The pensions office in Sligo are very helpful. I'd give them a call and follow up with a letter. You really want to get this right as it will be too late at retirement age. I had in the past to go thought this for my mother and you have to be careful with the social welfare officers as they don't all know the rules (and they've changed down the years).

In addition as far as I know, if someone is unemployed, but seeking work, they are entitled to get 'credited' contributions, even if they are not entitled to any dole. That's just something else to look into. Not sure if it would apply to your wife as she's a landlord as I don't know how that works. I also believe there was system to buy contributions but maybe that no longer applies.

For further information you could look up Colm Rapples book or the social welfare website. In addition Social welfare produce (or used to) a book that lists in detail all rules. I think you can order this via your local social welfare office or maybe a phone call will get you one.
 
Is the rental property/properties in her name only or joint names, it may make a difference.

Voluntary contributions can only be made within one year of the last paid contributions so if there is a gap it may not be an option.

It seems to be very difficult to obtain clear (to me) rules of entitlement for pensions after 2020

Perhaps she should get out the sponge the sponge and bucket and she can continue to do so indefinitely (beyond pension age) to enhance her pension even further.
I would draw the line at ladders!!!!!!!!!!
 
Last edited:
Oldnick
Forgot to mention that if wife has any entitlement to Homemakers years (i.e if she stayed at home to look after children born after 1983) this would increase her payment
 
Thanks Bronte , Blacksheep.

I spoke to Social Welfare in Buncrana -who deal with entitlements to state pension based on contributions.
I'd already received from them records of mine (i'm on pension in two months despite amazing youthful looks and juvenile behaviour) and my wife's (who constantly reminds people she married an older man) contributions -she's11/12 years to go.

Anyway, the staff dealing with records of PRSI payments seem confused about unearned income -rent, deposit interest- as regards entitlement to state pensions. Took three people and five mins hanging on the phone before one returned to say - "yes, if she earns over 5k p.a., she will gain contributions towards state pension on same basis as if she was working".

I never trust anyone in state employment unless I see it in official writing, and am therefore grateful for all your comments which guides me - and hopefully others - towards getting 100% printed accurate info regarding contributions.

(p.s. Blacksheep - your comment on drawing a line on the ladder made me laugh. In all truthfulness she is often up a ladder wallpapering our 12' ceilings plus some of the rental properties, which - for a five foot "mature" lady science graduate - she does excellently)
 
oldnick said:
.

I spoke to Social Welfare in Buncrana -who deal with entitlements to state pension based on contributions.

In all truthfulness she is often up a ladder wallpapering our 12' ceilings plus some of the rental properties,
Click to expand...

So they are in Donegal, I was sure it was Sligo I rang before. Are they going to confirm all this complication in writing?

I think it's time your wife retired from wallpapering, - you know you can deduct the cost of labour of same if you don't do it yourself but it reminds me of my own mother who was in business around the same age as your wife and needed to rent a room and we had to get the bathroom wallpapered and Bord Failte sent out a customer from the UK who was told on no uncertain terms not to arrive before 6 pm, but they couldn't wait and arrived with me up the ladder and my mother holding it. Luckily they thought it was a panic - fawlty towers. What they didn't know was that I'd only tiled the shower the day before. Must have done a good job as they never fell off.
 
Sligo is the main social welfare office,but Buncrana's the place for storing and sending out records of contributions.

You tile? My wife doesn't. I got a bum deal.
 
Sue Ellen was only seven at the time.

But she reminds me of the embarrasing fact that although my wife was working in our travel agency (harder than me) I never had her on the books at the time -didn't do things properly in the 80s and probably just assumed that everyone got full state pension at an age that I could never contemplate existed.
 
Just happened to be talking to a lady in the pension office to day who told me that they have no details of 2020 onwards, just proposals.
Their only advice is to arm yourself with as many contributions and credits as possible.
 
Sue Ellen said:
Firefly,

I remember him back as far as 70's/80s, he ain't jokin and his poor hard working wife is absolutely gorgeous
Click to expand...

I feel sorry for the youth of today. Back in my late teens rolleyes, early 20s () a favourite pastime of ours was to go into the totty-laden travel agencies in town and pretend to want to go on holiday in order to, ahem, make aquaintance with one of them. No disrespect intended oldnick, respect if anything .
 

Seems like a good reason to have an investment property there.
Does the 5k have to be profit or just rental total income of 5k over the year.
 
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