Rich self-employed says he is getting a pension

Brendan Burgess

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A friend of mine, a wealthy farmer on good land in Tipperary, says that he will be getting a pension when he reaches 66. He is critical of it saying that many of his wealthy farmer friends are getting it. He said that it is the non contributory OAP and everyone gets it - it's not specifically for farmers.

I said that, as far as I know, the non-contributory pension is subject to a means test. From reading Citizens Information, this seems to be correct.

He would have a valuable farm and other business interests which generate a substantial income for him.



Brendan
 
But the self employed can also qualify for the contributory pension cant they?
 
Farmers / Self Employed are PRSI class S -
As long as a person has the required number of contributions; no reason they will not qualify for the contributory pension.

As far as I am aware , they do not qualify a person for the transitional state mension however (paid at 65 to 66)

CLASS S BENEFITS:
  • Widow's or Widower's (Contributory) Pension
  • Guardian's Payment (Contributory)
  • State Pension (Contributory)
  • Maternity Benefit
  • Adoptive Benefit
  • Bereavement Grant
 
I got this clarification from my friend


Brendan
 
Brendan Burgess said:
So all self-employed people can qualify for a contributory OAP.

I must check this out myself.
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Its been discussed on AAM many times over the years.

 
I got a follow on email from my friend

 
A worthwhile argument Brendan, just a pity to see it being couched in terms of 'rich farmer' bashing that merely adds to city dwellers prejudices about farming. 'Your friend' has paid for his pension, and is no more undeserving of it than Ray Burke or Mary Harney are of theirs
 
Brendan, does your friend know you are posting his emails on a discussion forum?
 

Hi Tommy

That is why I edited the title when I realised it was for all self-employed people.

I have now deleted the posts relating to the farm retirment scheme as well, as they are no longer relevant.

Brendan
 
Wasn't that farmer a lucky man that his accountant looked after him so well.
There huge lack of understanding of State Pensions and the qualifying conditions.
As there no degrees in SW the advice is very scarce and everybody who pays PRSI at whichever rates should have a good look at what they are paying and what benefits they are entitled to. At present (which may change shortly) everyone who has paid sufficient class A or S contributions should get their State Pension at age 66.

Also available at age 66 is

  • Free travel (whether or not you have a State Pension)
  • Household Benefit .ie. Electricity, & telephone discounts + free TV license (non means tested)
 
Black Sheep said:
Not sure which part isn't straightforward
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I presume that Slim was referring to the fact that you don't necessarily/automatically get all of those benefits at 66 and there are some qualifying conditions attaching to some of them? E.g.:

 
Brendan Burgess said:
Hi Liam

Will it still be there by the time you retire? I suspect it will be means tested by then.

Brendan
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Brendan,

Are you suggesting that the contributory pension will be means tested for PAYE workers as well, or just the self employed?
 
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