The 2012 pension changes (Im not overly familiar with the details) I think allowed people with 520 minimum prsi contributions avail of the full state pension (my understanding) . Therefore if you only worked 10 years full time before retirement you could avail of full state pension. There has been alot of publicity about how this change disenfrachised working women who took long breaks from workforce for family reasons and therefore reduced considerably their average prsi contributions. However there has been no publicity about the people who benefited from this change (people who started working in ireland very late in their working lives). Surely in all fairness when this change was introduced the minimum prsi contributions should have been closer to 20 years rather than 10 years considering how much the state pension costs.
My question is if this change was brought in to save the state money why then did they not also increase the minimum total prsi contributions to avail of state pension. It seems to have benefited immigrants arriving in Ireland late in life to start working to the detriment of people who have worked here all their lives.
Hopefully It will not be an issue for me I have reached 65 will be 66 in a few months,A Thorny issue which I think will be revisited again and again before I get to my State Pension ' entitlement ' which is a long way off.
People are right to be examining this but moreso do be mindful of your unique situation, establish your contributions now and monitor into the future so you qualify for the max if it still exists when you reach retirement age, I would be less concerned about other contributors.
The 2012 change was not about the minimum no. of conts.
It was about the rate bands for the average no. of conts.
I suspect there are a lot of people who don't know that in 2005 The Government of the day changed the way any surplus in the prsi fund is managed ,the 370 million from 2016 is suppose to be ring fenced and kept until needed, Did not take long to be raided by a lobby group,
very interesting i was not aware of this. I dont understand why there is so little publicity about all this , no minister is ever tackled by the media about the fact that some people get a full pension after paying very little in. This is grossly unfair to people that have paid in all their lives. The surplus should be invested for the benefit of people like me that have 20 years to go to retirement. My suspicion is that there will be only a small state pension left by then.
I brought up the issue of immigrants arriving in ireland able to avail of state pension after only 10 years full time work before retirement. In fairness I think very few immigrants would have benefited from this as they are mostly much younger and not near retirement age and it will be closed off in 2020 anyway.
It genuinely worries me when I think about what might be coming down the tracks.
No doubt the prudent will end up paying for the profligate (as usual).
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