Moneymakeover Looking for advice on going from DC pension to ARF/PRSA and what to do with a lump sum payment.

You should read the thread below
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You need to be careful because there are traps which can cause your rental income to be class K Prsi. One class A contribution from employment can cause this. Class K is not reckonable for COAP.

Drawdowns from an ARF will guarantee you 52 class S per year.

When you have unearned income (and where this is class S) of 5k + per year you are charged a minimum of €650 or 4.2%. Prsi. This also gives you 52 class S per year.

You can and should continue to sign on for Jobseekers credits after your payments end. You can have class S and Jobseekers credits alongside each other.

Jobseekers credits are very useful in order to qualify for Benefit payment 65.

Key Post - PRSI and planning retirement

This Key Post is in the form of a FAQ where I don't know many of the answers. I will update the post as I get answers. 1. PRSI payable on reaching state pension age Answer: 0 (Class M) 1a. Does this relate to the start of the tax year in which you become 66? Or to after your birthday? Answer...
www.askaboutmoney.com
 
Thanks S class, yes I was reading that thread the other day. So are you saying I can use jobseekers credits and the class s from the rental income without going into drawdown on my DC?

That said I will need another income source once the PRJSB ends to supplement the rental income.

Thanks
 
Jobseekers credits are all you actually need for your COAP. You can use up to 520 of these as reckonable for COAP.

So in reality it doesn't matter what happens to your rental income.

Take ARF drawdowns of your own choice.

Make sure to sign on for Jobseekers credits at least up to your 64th birthday. This will guarantee you BP65 provided that your rental income remains below 7.5k.
 
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