PRSI question re retirement age

J

January25

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A public sector employee relative has 1473 class A contributions at age 53. If they retire at 60 they could have 364 more. So a total of 1837. If they wait till 61 it would be 1889. They also have class S contributions from a rental property.
They are considering a shorter working year of 4 weeks off for the next 7 years. Does this affect the contributions ?
How much OAP will they get ? Ideally they plan to retire at 60. No AVCs yet but could be looked at.
 
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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...
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You say immediately ? Is it that urgent ? I read elsewhere that you need to take 5 k per annum from the ARF is that correct. If so does thee need to be 100k in the ARF ?
Any advice re shorter working year ? Would it cause an impact or affect PRSI at all ?
 
Another question. Say if the person had to retire on ill health before 60 ? What happens to the PRSI then ?
 
January25 said:
Say if the person had to retire on ill health before 60 ?
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They may qualify for PRSI credits:

Credited social insurance contributions

A credited social insurance contribution is a contribution given to you and recorded on your social insurance record. This page explains the rules on credited contributions for students, carers, homemakers, voluntary development workers and people who retire early.
www.citizensinformation.ie www.citizensinformation.ie
 
January25 said:
I read elsewhere that you need to take 5 k per annum from the ARF is that correct. If so does thee need to be 100k in the ARF ?
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You can take whatever you want out of an ARF. There are minimums once you hit 61 and 71 (or have over 2m in it). The minimum of 5K is to do with qualifying for 52 PRSI Class-S contributions.
 
January25 said:
They are considering a shorter working year of 4 weeks off for the next 7 years. Does this affect the contributions ?
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Probably. It does where I work. So it may cost 28 PRSI stamps. But so what. Sign on for credits once work stops or if that doesn't pan out just pay for Voluntary PRSI.

Start an AVC now, even at a small initial regular amount, easy to vary thereafter.

If their 60th birthday is later in the year, and they can face it, it may be worth working until the end of March in the year they turn 61 to glean 13 paid PRSI, with an eye to qualifying for the Benefit Payment for 65 Year Olds.
 
What’s involved in signing on for PRSI credits ? Would that be from 60-66 ? Is it free ?

So voluntary contributions of 500€ per year for 6 years would also reach the magic number.

In relation to the governing contribution year /GCY (never heard of it before now) for the benefit payment for 65 year olds - would they not have to work until age 63 ?

It’s quite confusing to read about. How much is the benefit payment for 65 year olds ?
 
You were getting assistance here, but you didn't seem to appreciate the efforts of other posters.

PRSI credits query

Hi my spouse is approaching his 53rd birthday. He has 1473 reckonable PRSI credits. So he is over 11 years short of the 2080 needed. He is a public servant.spent a year in the UK but has worked otherwise continuously in Ireland in the public sector since 1996. He is hoping not to work for...
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Yes I did read it. Just trying to figure out exactly what to do. Go to an intreo office. Is that a weekly visit or is it a once off or an annual signing ?
As an alternative 30 k in an ARF with drawdowns of 5k per annum from age 60 and they will get the necessary credits.
 
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January25 said:
Just trying to figure out exactly what to do.
Click to expand...

Credited social insurance contributions

A credited social insurance contribution is a contribution given to you and recorded on your social insurance record. This page explains the rules on credited contributions for students, carers, homemakers, voluntary development workers and people who retire early.
www.citizensinformation.ie www.citizensinformation.ie
January25 said:
Go to an intreo office. Is that a weekly visit or is it a once off or an annual signing ?
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It may depend on whether or not the credits are linked to a social welfare payment or scheme and what that payment is etc. E.g. Jobseeker's Benefit, Illness Benefit, Invalidity Pension, Back To Education Allowance etc.
January25 said:
As an alternative 30 k in an ARF with drawdowns of 5k per annum from age 60 and they will get the necessary credits.
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In that case you'd be making class S PRSI contributions on the pension income - not getting credits.
 
Can someone clarify the class S contribution. In the context of an ARF drawdown of 5 k and rental income is it reckonable. The retiree intends to travel away a bit in retirement and so may not be available to sign on periodically if that is a requirement.
 
January25 said:
Can someone clarify the class S contribution. In the context of an ARF drawdown of 5 k and rental income is it reckonable.
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Class S PRSI contributions count towards the OACP:

Class S PRSI

Information on Class S PRSI contributions paid by self-employed people.
www.citizensinformation.ie www.citizensinformation.ie
If you pay Class S contributions and you meet all the other conditions for the payment, you may be entitled to:
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