Rich self-employed says he is getting a pension

Brendan Burgess

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

I applied or rather my accountants did to the State Pension (Contributory),Dept of Social Protection and received a letter from them confirming that I am entitled to to the full amount. I didnt think I had said to you that this was Non Contributory and this clearly means that I must have been contributing each year as I paid my taxes. Is this taken out of PRSI or what? I am afraid I am a bit clueless about it but do recall about 15 yrs ago discussing what I might be entitled to with my then acountants who advised ensuring that the contribution, whatever it may be, was paid. I assumed everyone who was self employed did this. Are you saying that if you havent contributed (which I thought was compulsory if you have an income) then you get no pension? Any of my friends and acquaintances who are relatively well off and who are over 66 are drawing the pension. I assume this applies to all the self employed equally whether they are business people in Ballsbridge, professionals in Portmarnock or tillage farmers in Tipperary.
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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.

daltonr said:
One of the benefits of Class S PRSI is the Old Age Contributory Pension which according to OASIS currently (2007) stands at €179.30 per week and is not means tested and I can have other sources of income. €179.30 per week is an annual income of €9,323.60
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I got a follow on email from my friend

I am not eligible for the fuel allowance.


But I am eligible for the free travel which entitles me to hop on bus or train and go wherever I like, all day, every day!! So with free travel and pension I can head to Dublin, say twice a week, have lunch in Patrick Gilbauds and head home again by bus and train.

And finally, now that you have me reading the details, it seems I will also get an electricity allowance, a telephone allowance and a free TV licence.

WOOOPEEEEE. What a wonderful country. (Before it goes down the tubes)
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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? :D
 
T McGibney said:
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
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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.:

Household Benefits Package

The Household Benefits Package includes the Electricity or Natural Gas Allowance, Free TV Licence and Telephone Allowance. If you are aged 70 or over, you qualify regardless of your income or who lives with you. The scheme may also be available to people aged 66 and over who get certain social welfare payments or whose income is below certain limits. Apply to the Department of Social Protection.
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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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