State Pensions: 1 Dec 2022: Written answers (KildareStreet.com)
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Table 1 - Phased 10 year Full Transition to the Total Contributions Approach and Abolition of the Yearly Average Method
Year Attaining State Pension Age 66 If a person is better-off with Yearly Average Calculation Mix of the Yearly Average and Total Contribution Approach to be used in the transition phase If a person is better-off withTotal Contributions ApproachCalculation 2024 90% Yearly Average +10% Total Contributions Approach 100% Total Contributions Approach 2025 80% Yearly Average +20% Total Contributions Approach 100% Total Contributions Approach 2026 70% Yearly Average +30% Total Contributions Approach 100% Total Contributions Approach 2027 60% Yearly Average +40% Total Contributions Approach 100% Total Contributions Approach 2028 50% Yearly Average +50% Total Contributions Approach 100% Total Contributions Approach 2029 40% Yearly Average +60% Total Contributions Approach 100% Total Contributions Approach 2030 30% Yearly Average +70% Total Contributions Approach 100% Total Contributions Approach 2031 20% Yearly Average +80% Total Contributions Approach 100% Total Contributions Approach 2032 10% Yearly Average +90% Total Contributions Approach 100% Total Contributions Approach 2033 100% Total Contributions Approach 100% Total Contributions Approach
Doesn't apply to me I'm afraidSlightly OT but did you work in the UK before 2000? If so have a look here:
This is exactly what I was looking for, thank you!
I think that based on the current full pension of €265.30 that
I with 28 years' contributions, retiring in 2028 should get €225.51. Is that correct?
My calculation was:
In 2028 the phasing means the calculation will be 50% old way and 50% new way.
50% of full pension is €132.65
For the Old way 50% I get the full amount, ie €132.65.
For the new way 50%, with 28 years contributions, I'll get 28/40 of €132.65, ie €92.86
Adding together: €132.65 + €92.86 = €225.51
While the new system may seem fairer, it is really just a money grabbing exercise.An inequity in the current system is that its possible to get a full State Pension with only 10 years service (eg if you emigrated into Ireland at say age 55 and worked for 10 years paying Class A Contributions). Whereas someone else might require 40 years of A to get a full pension.
So a move to the Total Contribution Approach, even on a phased basis, is fair and equitable.
I think that is right. Either way the new method won't leave anyone better off, but lots of people will be worse off.
I suppose its fairer, but it does seem to be designed, solely, to cut costs.
Perhaps they will reduce the number of contributions to 35 years ( same as UK) or allow people to buy back missing years ( same as UK), but I doubt it.
Yesterday was a real roller coaster of a day for me. I started off expecting something like the new system to apply but I was a bit worried that not having anywhere near a full record might mean I'd fall below some significant threshold.An inequity in the current system is that its possible to get a full State Pension with only 10 years service (eg if you emigrated into Ireland at say age 55 and worked for 10 years paying Class A Contributions). Whereas someone else might require 40 years of A to get a full pension.
So a move to the Total Contribution Approach, even on a phased basis, is fair and equitable.
Why an arbitrary 35 years though? That would (to use your own language) punish people who arrived say 25 years ago. The averaging approach had to go and I speak as someone who would have benefited from its retention as I have a ca. 13 year gap in my Irish social insurance record, right in the middle of my working life. I would have been able to get a full COAP under averaging but I will be a small bit short under TCA. Funding full COAPs from the taxation of workers just starting out, for people who arrived in Ireland at 56 is bizarre to say the least. One can argue that the phase out should have been longer, perhaps over 20 years, but the principle of moving to TCA is entirely fair and reasonable for future taxpayers.While the new system may seem fairer, it is really just a money grabbing exercise.
The new arrangement brings no benefit to anyone. It simply punishes people who , previously, would have received a full pension under averaging, whilst leaving the the other cohort untouched.
Although the TCA group will now be able to rest easy, knowing that another group of Irish citizens won’t be getting a bit more than them, they won’t be any better off.
The correct way to equalise these systems would be to abolish averaging, whilst reducing the number of contributions required,
So, a change to 35 years, or less, would be fairer and less punitive to those who arrived in Ireland , within the last 30/35 years.
The current averaging setup is fairly perverse and seems to disproportionately reward people who have considerably pension rights built up in the UK and elsewhere. Though it does probably help some people coming from less developed countries with lower costs of living and pension provision.An inequity in the current system is that its possible to get a full State Pension with only 10 years service (eg if you emigrated into Ireland at say age 55 and worked for 10 years paying Class A Contributions). Whereas someone else might require 40 years of A to get a full pension.
So a move to the Total Contribution Approach, even on a phased basis, is fair and equitable.
1902/2080 (0.91) x 30% of full pension = €72.42I reach 66 in 2026 and will have 1902 contributions paid to end of 2025 over 48 years.What will I get under this new system?
Anyone care to advise me of what state pension I will get ? I first paid stamps in 1986 as a student summer job but then left ireland in 1990 and worked in Germany for 12 years. I returned in 2002 and calculate that I will have paid a totsl 1632 stamps by 65 (2033). Believe its normal Class A.
I will also be entitled to a partial German state pension for the 12 years paying into their system there which presumeably I can also draw down ?
35 or 30 , its just a suggestion. Or, alternatively, if you want to make it fully equal, give everyone the right to buy back years, up to the maximum.Why an arbitrary 35 years though? That would (to use your own language) punish people who arrived say 25 years ago. The averaging approach had to go and I speak as someone who would have benefited from its retention as I have a ca. 13 year gap in my Irish social insurance record, right in the middle of my working life. I would have been able to get a full COAP under averaging but I will be a small bit short under TCA. Funding full COAPs from the taxation of workers just starting out, for people who arrived in Ireland at 56 is bizarre to say the least. One can argue that the phase out should have been longer, perhaps over 20 years, but the principle of moving to TCA is entirely fair and reasonable for future taxpayers.
I view this as fixing a basically broken pensions system to be honest. I would argue that the new system does bring benefits to people, just not the pensioners who would have been entitled to a full COAP after 10 years of contributions. It benefits wider society in that those pensions will now not need to be paid and the taxation instead spent on public services.
@jimmijUnluckily for you, I believe that your pension will be entirely calculated under the new TCA approach.
That means you'll get 1632/2080 of the full pension, 78.5% .
At today's pension that would be €208.16.
It's extraordinary to think that there will be some people retiring this year who first started contributing 27 years after your first contributions and have fewer than 1/3 your eventual number of contributions but who will be retiring on a pension 27% bigger than what you'll be getting.
If you have any gaps in your record (for example when in full time education as an adult) you may well be able to get additional credits (Entgeltpunkte) to go towards a better German pension. Speak to the DRV about that! Also any time spent rearing children should be considered. You should make sure the DRV has your address and request a statement. Unlike in Ireland, they will project your future pension. You may be able to take your German pension at 63 already if you are happy to take a penalty.Anyone care to advise me of what state pension I will get ? I first paid stamps in 1986 as a student summer job but then left ireland in 1990 and worked in Germany for 12 years. I returned in 2002 and calculate that I will have paid a totsl 1632 stamps by 65 (2033). Believe its normal Class A.
I will also be entitled to a partial German state pension for the 12 years paying into their system there which presumeably I can also draw down ?
I've always felt the existing system is terribly unfair particulary if like me you took a student job but started your proper career abroad so the fact that a shitty job I had when I was 18 for 3 months makes my total years for the average annual calc 47 is ridiculous. Same applies for women with career breaks for rearing a family. I welcome the move to TCA as it at least seems more just.Unluckily for you, I believe that your pension will be entirely calculated under the new TCA approach.
That means you'll get 1632/2080 of the full pension, 78.5% .
At today's pension that would be €208.16.
It's extraordinary to think that there will be some people retiring this year who first started contributing 27 years after your first contributions and have fewer than 1/3 your eventual number of contributions but who will be retiring on a pension 27% bigger than what you'll be getting.
The " existing system " is that you currently get the higher of the two calculation models. But the proposal (not yet law) is from 2024 to gradually move to the TCA. The Minister's answer in the Dail needs to be turned into legislation.I've always felt the existing system is terribly unfair particulary if like me you took a student job but started your proper career abroad so the fact that a shitty job I had when I was 18 for 3 months makes my total years for the average annual calc 47 is ridiculous. Same applies for women with career breaks for rearing a family. I welcome the move to TCA as it at least seems more just.
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