PRSI over 66

[Roro999]

I understand PRSI no longer applies after age 66.
How does this work in the year one turns 66 ?
Is it automatically stopped from personal pension provider from the month one turns 66 ?
I am thinking of withdrawing a lump sum from my pension before 31st Dec and assume 4% PRSI won't be deducted.

 

[ClubMan]

I understand PRSI no longer applies after age 66.

That's not strictly correct.

Pay Related Social Insurance (PRSI) and Universal Social Charge (USC)

This section explains Pay Related Social Insurance (PRSI) and Universal Social Charge (USC)

www.revenue.ie

From 1 January 2024, you will be able to draw down your State Pension (Contributory) between age 66 and 70. You will continue to be liable for PRSI until you:

• are awarded the State Pension (Contributory)
• or
• reach age 70.

 

[Roro999]

Thanks. Turned 66 in July.

 

[S class]

You should contact the pension provider and tell them if you have started your COAP.

 

[ClubMan]

Turned 66 in July.

You're still liable for PRSI unless you have started receiving your Contributory Old Age Pension.

 

[Slim]

Can I please clarify: if you're awarded the Contributory State Pension and you also draw from an ARF, are you liable to PRSI on the drawings from the ARF?

 

[ClubMan]

No.

Pay Related Social Insurance (PRSI) and Universal Social Charge (USC)

This section explains Pay Related Social Insurance (PRSI) and Universal Social Charge (USC)

www.revenue.ie

From 1 January 2024, you will be able to draw down your State Pension (Contributory) between age 66 and 70. You will continue to be liable for PRSI until you:

• are awarded the State Pension (Contributory)
• or
• reach age 70.

 

[S class]

ARFs are still liable to Prsi class M after you start your COAP.

But class M is zero rated, so you no longer have to pay Prsi.

If you are taking monthly drawdowns, the drawdown for your 66th birthday month is class M.

Any sums taken after your 66th birthday are also class M.

Your ARF provider should contact you before your 66th birthday to check if you have started your COAP.

If they don't, you need to inform them that you have started your COAP.

 

[ClubMan]

ARFs are still liable to Prsi class M after you start your COAP.

But class M is zero rated, so you no longer have to pay Prsi.

Thanks for that clarification @S class.

 

[Slim]

Thanks S class and ClubMan. I did read that link but was still unsure. Clear now!

 

[podgerodge]

You're still liable for PRSI unless you have started receiving your Contributory Old Age Pension.

But not on your work pension right?

Edit - sorry, just read subsequent posts, so there's exceptions, which include the work pension.

 

[Towger]

You're still liable for PRSI unless you have started receiving your Contributory Old Age Pension

You are still liable, except it is zero rated Class M.

Edit, I see S Class has already said that.

BTW DSP insist on using the term 'PRSI Exempt' in their documentation. This results in many older workers (, children) and pensioners being paid as 'PRSI Exempt'. Exempt in the accountancy and Revenue world means you are 'exempt', so no PRSIable pay and Insurable Weeks are reported!

 

[Towger]

You should contact the pension provider and tell them if you have started your COAP.

There should be no need. Since the start of the year Revenue feed this information automatically to payrolls.