Semi State employed Wife just short of 520 PRSI contribution for State Pension

@Persia

In order to simplify this as much as possible.

If you are trying to reach your target of either 260 or 520 full rate paid contributions at the earliest possible date, and to maximise your total reckonable credits then.....

For your retirement year.....

The best way is to have change of status credits up your retirement date in September 2025 and class S or class A Contributions up to the end of 2025.
 
@S class , thanks, will have to forego retirement year for calculations toward S class, don't know any employers.
Will use ARF and rental income to get S class from next year.
 
@Persia

It is very easy for any person to register as an employer.
There is some information on this post.

It's a pity to miss out on up to 104 extra reckonable credits.
If you know anybody willing to register, the setup is straightforward. You can post questions about setting up and I could assist.


Key Post - PRSI and planning retirement

Is there any point several years from applying for contributory pension in getting homemaker credits and years spent in the US addressed on my and my wife’s statements? Or is that something we deal with on application? For the US years I believe our social security numbers and names of...
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So, in the most basic scenario, a person who was a Class D employee retires in October and then starts to drawdown an ARF either in November or in January the following year. The drawdowns in Nov/Dec would be < 5000

Is the PRSI at Class S (and so is reckonable for COAP) or Class K ?
 
ARF drawdowns are always at class S.

If they drawdown more than 5k in Nov or Dec, they will get 52 class S on their 2025 Prsi record. But only some of these will be Reckonable for COAP. (as explained in #16).

If their first drawdown of more than 5k is in 2026, they get no class S for 2025, but they will get 52 reckonable class S for 2026.
 
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Thanks S Class.
Class K is not relevent then, if the person was a Class D. It will be Class S all the way after retirement year? Or is it the case that the Class D job must have ceased before Class S is applied to their ARF?

I found this.... https://www.oireachtas.ie/en/debates/question/2018-11-21/241/#pq-answers-241

"Distributions from ARFs fall within the charge to Class S self-employed PRSI, or if the recipient of the distribution is a modified class contributor, Class K. Class S contributions may be used to qualify for the State pension (contributory). Class K PRSI contributions do not give entitlements to any social insurance benefits."

I see that this question was discussed here too...

PRSI ARF contribution class

I am a pre 95 public servant retiring shortly. Prior to my joining the public service I have 8.5 years class A credits. On retirement and after maximising my tax free lump sum I will have further funds to invest in an ARF. I am 58 years of age and I plan to withdraw 5k from the ARF each year...
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@redstar

The wording in that Oireachtas debate is confusing.

I have linked a post from a person with class D and an ARF in their retirement year. The ARF is class S for that year.

If you check out the link in post #238 in that thread, you will see a person with mixed employment during periods when they were probably on a career break. During 2004 and 2005 they have Reckonable class S alongside class D.


Key Post - PRSI and planning retirement

2019 they have me down as 52k which is not correct, The rules for class K are very convoluted. Check out here to see if you should be class K or class S. Post in thread 'PRSI and planning retirement' https://www.askaboutmoney.com/threads/prsi-and-planning-retirement.232440/post-1839828
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redstar said:
Or is it the case that the Class D job must have ceased before Class S is applied to their ARF?.
Click to expand...
This is hard to explain.
The class D employee will get class S Prsi from their ARF.
But not all of the class S are Reckonable for the COAP.


In the links in my last post you will see that Class S is only reckonable when a class D employee is either on a career break or has ceased their class D employment.

Class S is only Reckonable for the weeks where there was no class D contributions.
 
Very useful clarifications S Class, especially those other links, thanks!

So this could play out like...
Retire in Oct, age 62.
Drawdown 5000 from an ARF in Nov/Dec: Class D = 39, Class S = 52 BUT only 13 are reckonable for COAP
Year following retirement - drawdown 5k. Class S = 52, all reckonable
Drawdown 5k until age 70 = 7 yrs x 52 = 364+13 reckonable for COAP to help bump up the reckonable 'stamps' for COAP
 
Exactly.

If the extra 13 paid class S are useful to reach the 260 or 520 full rate paid Prsi target a year earlier this is an excellent plan.

If the extra 13 paid class S are not vital in reaching the 260 or 520 target, you could try to get change of status credits for the full retirement year and avoid having to deplete your ARF earlier in order to just gain the 13 extra paid contributions.
 
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