making sense of pension statement.

Buddy2022

New Member
Messages
7
Hi all, i left one of the financial institutions in 2013 - have not been in paid employed since. I had worked with this institution since 1990 but pensionable service did not start until 1992. Anyways, my pension statement shows that my DB will be E9819.85 p.a. - could this be right?, that would be about 800 euro per month - is that then taxable?.......will i qualify for contributory pension as well.

Any help appreciated, it double dutch to me. I also have 31k in an AVC which i cannot access until retirement.

Thanks guys


Buddy
 

ClubMan

Registered User
Messages
45,309
is that then taxable?
Pension income is assessable for tax, yes.
.......will i qualify for contributory pension as well.
Depends on your PRSI contributions.
Here's a brief overview of the scheme and PRSI contribution qualification criteria.
 

ClubMan

Registered User
Messages
45,309
Anyways, my pension statement shows that my DB will be E9819.85 p.a. - could this be right?, that would be about 800 euro per month
If that's what the statement is saying and it's not an estimate/projection then why do you doubt it?
 

Groucho

Registered User
Messages
190
We'd need to know your PRSI history before advising on whether or not you'd be entitled to a State Contributory Pension. But assuming that you paid a Class A PRSI contribution for the 23 years that you worked for the financial institution then you'd definitely be eligible for some portion of it.
 

Dave Vanian

Registered User
Messages
1,033
Anyways, my pension statement shows that my DB will be E9819.85 p.a. - could this be right?

The calculation of how much your DB pension will be involves a number of variables, one of which is your salary while you were working there. So without knowing the salary and the rules of the particular pension scheme, it's impossible to say whether or not this estimate is right.
 

Buddy2022

New Member
Messages
7
Thank you everyone I just thought it seemed low but it is probably correct i only worked a 3 day week for about 10 of the 23 years, i would have paid 24 years class a contributions and i am now being credited directly by welfare for 52 weeks each year if that makes sense?
Teresa.
 

Groucho

Registered User
Messages
190
I would have paid 24 years class a contributions and i am now being credited directly by welfare for 52 weeks each year if that makes sense?
Teresa.

Well in that case, by the time you hit 66 or 67 (or 68) you'll probably have accumulated enough reckonable contributions to enable you to get the full State Contrib Pension.*

*From what you write you probably have about 33 years' reckonable contributions by now, so assuming that (i) you're in your 50's and (ii) you keep getting 52 credits annually, you'll qualify for the full pension.
 

Paul O Mahoney

Registered User
Messages
1,856
Hi all, i left one of the financial institutions in 2013 - have not been in paid employed since. I had worked with this institution since 1990 but pensionable service did not start until 1992. Anyways, my pension statement shows that my DB will be E9819.85 p.a. - could this be right?, that would be about 800 euro per month - is that then taxable?.......will i qualify for contributory pension as well.

Any help appreciated, it double dutch to me. I also have 31k in an AVC which i cannot access until retirement.

Thanks guys


Buddy
I hope I don't sound rude but why haven't you worked since 2013?

I too haven't worked since 2007 but was sick until 2013 , our means prevent me from getting anything by way of Social Welfare despite working since 1987 until 2007 when I got sick but I do " sign " on annually for " credits " is my situation like yours?
 

Buddy2022

New Member
Messages
7
I hope I don't sound rude but why haven't you worked since 2013?

I too haven't worked since 2007 but was sick until 2013 , our means prevent me from getting anything by way of Social Welfare despite working since 1987 until 2007 when I got sick but I do " sign " on annually for " credits " is my situation like yours?
I was full time carer for my parents from 2013 to 2016 with no payment from SW as was over the threshold for carers allowance, after they passed away within3 days of each other which was very traumatic so at that point after a very busy 3 years I decided to take some time for myself. I do a huge amount of voluntary work and am lucky that my husband can support both of us.
 

Paul O Mahoney

Registered User
Messages
1,856
I was full time carer for my parents from 2013 to 2016 with no payment from SW as was over the threshold for carers allowance, after they passed away within3 days of each other which was very traumatic so at that point after a very busy 3 years I decided to take some time for myself. I do a huge amount of voluntary work and am lucky that my husband can support both of us.
Same as me, well keep signing on for the credits so you will get what your entitled too when the time comes.

On the pension I wouldn't be an expert but congratulations on the voluntary work, like you I do a bit also and I feel it gives a sense of purpose.

You've been through a lot and perhaps the pension will allow yourself and husband to enjoy life a bit more, I know my parents used my father's pension for travelling 4 or 5 times a year and his pension was lower than yours.

Take Care.
 

Buddy2022

New Member
Messages
7
Same as me, well keep signing on for the credits so you will get what your entitled too when the time comes.

On the pension I wouldn't be an expert but congratulations on the voluntary work, like you I do a bit also and I feel it gives a sense of purpose.

You've been through a lot and perhaps the pension will allow yourself and husband to enjoy life a bit more, I know my parents used my father's pension for travelling 4 or 5 times a year and his pension was lower than yours.

Take Care.
Thank you for that.
 

ClubMan

Registered User
Messages
45,309
No not on any social welfare payment at all but get called annually to SW office to sign.
I see. Can anybody shed light on this scheme?
I presume it's not the one where one can purchase additional stamps?

Edit: is it perhaps under one of the categories listed here? Illness, carer, homemaker etc.?
 

Paul O Mahoney

Registered User
Messages
1,856
I see. Can anybody shed light on this scheme?
I presume it's not the one where one can purchase additional stamps?
Its simply to keep your " stamps" accumulating so that when its time one gets the contributory pension. Theres no payment.
 

ClubMan

Registered User
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45,309
Its simply to keep your " stamps" accumulating so that when its time one gets the contributory pension. Theres no payment.
But how does that work?
Why would anybody purchase stamps for 6.6% of previous income or €500 p.a. if they can get them for free?
Surely there some qualifying conditions for these credits?
And surely if I'm not working I can't just rock up to SW and say "can I have a year's worth of free PRSI contributions please?".
 

bstop

Registered User
Messages
361
I also have 31k in an AVC which i cannot access until retirement.
Try to use the taxable portion of your AVCs to set up an ARF before the year you reach age 63. If you can do this you will get "paid S class" Prsi contributions. If you get 52 S contributions in your 63rd year, you can qualify for the Benefit payment for 65 year olds. It is important to set up your ARF to monthly drawdowns in order to get the 52 S class contributions per year.

The 65 year olds Benefit would give you a payment of 208 euro per week for a full year.
 
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Conan

Registered User
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1,457
But how does that work?
Why would anybody purchase stamps for 6.6% of previous income or €500 p.a. if they can get them for free?
Surely there some qualifying conditions for these credits?
And surely if I'm not working I can't just rock up to SW and say "can I have a year's worth of free PRSI contributions please?".
Normally to "sign on" for credits only, you still need to be available for and genuinely seeking employment. However if you are aged 62 or over you should NOT be required to take part in the "activation process" (ie be actively seeking employment).
 
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Bluefin

Registered User
Messages
160
Normally to "sign on" for credits only, you still need to be available for and genuinely seeking employment. However if you are aged 62 or over you should be required to take part in the "activation process" (ie be actively seeking employment).
Exactly... You are still seeking employment opportunities but your husband /wife would be earning to much for you to qualify for a means tested payment....
 

ClubMan

Registered User
Messages
45,309
So how can the original poster avail of this when they don't seem to be available for/seeking work?
 
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