I read somewhere that they would be a transition period so I wouldn't worry too much at the moment.Thank you Conan. I expect you are right sbout Brexit.
The State pension will be reformed and will remain as the fundamental bedrock of the pension system in Ireland. To do this, the Government will introduce from 2020 a 'Total Contributions Approach' (TCA) for the State Pension (Contributory). The TCA is advanced as a more logical and transparent system, where the individual's lifetime contribution will more closely match the benefit received.
Under TCA, a person's contributory pension will be proportionate to the contributions they make, with fair regard for periods of child rearing, full time caring, and periods in receipt of social protection payments. With effect from March 2018 (with arrears paid at the start of 2019), people who reached pension age from 1 September 2012 will be offered the option of transferring to a TCA model, and following a consultation in 2018, a TCA model will be proposed for all new pensioners from 2020.
As with the model being offered on a transitional basis to post-2012 pensioners, the model from 2020 is expected to prioritise those who up to now were impacted upon by anomalies in the 'Yearly Average' system in place since 1961, and whose home-caring prior to 1994 has not been recognised until now. For those with very few contributions who are not favoured by the new system, there will remain a non-contributory pension.
I am currently 65 and will be 66 when the government’s proposed changes to how the state pension is calculated i.e. based on total contributions is introduced. Also, in 2020 the number of contributory years jumps to 40 from 30.
I suspect the are snookered on the none contributory pension, it is almost as much as the contributory pension cant see them going to 40 years for a contributory pension ,someone who never worked a day in there life would finish up on more than a person who worked for 35 years and seen around 18% of payroll taken most of there working life,We don't really know if this figure has been set in stone yet. We need to wait until the finer details emerge and with Brexit it may very well be delayed.
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