Rental income as income for pension purposes

R

raisinette

Registered User
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Hi,
my wife is disabled and has never work (no PRSI/stamp) and no income. My earnings preclude any means tested entitlement. Both now 50 and concerned that she has no pension. We have a jointly held rental property. Could rental income from this property be income for my wife upon which she could pay class A or S and begin paying towards a contributory pension at 68?
 
Rental income is "unearned income" so it is not allowable for pension payments. I believe the rationale is that retirement does not cause a drop in rental income as it does in earned income.
 
Mrs Vimes said:
Rental income is "unearned income" so it is not allowable for pension payments. I believe the rationale is that retirement does not cause a drop in rental income as it does in earned income.
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I should clarify that I'm talking about PRSI contributions leading to a contributory old-age pension (at 68). According to calls I made today to Revenue/Pensions (crossed between both), self-assessed income over €5K triggers Class S contributions (4%). As I say, I'm piecing this together from calls to Revenue/Pensions but so far it seems correct.
 
I wouldn't claim to be up-to-date on the topic ;). Would you have any idea when it changed?

It always made sense to me that you couldn't retire from unearned income.

Note that I was answering a different question to the one asked anyway!
 
Mrs Vimes said:
I wouldn't claim to be up-to-date on the topic ;). Would you have any idea when it changed?

It always made sense to me that you couldn't retire from unearned income.

Note that I was answering a different question to the one asked anyway!
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I think there's crossed wires here. You're talking about the calculation of Net Relevant Earnings for the purpose of calculating the maximum amount that a person can contribute to a private pension / AVC / PRSA, and you're correct.

And as the OP has now clarified, he's talking about paying PRSI to qualify for a contributory state pension.
 
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