Hi,
I would be very grateful for you to offer a view on whether I have understood the situation correctly that is described below:
1. State contributory pension is (currently) only payable from age 66
2. I have a mix of contributions types 100 A1, 111 D1, 3 K1, 5 K, 616 D (at end of this year as this is current employment), 54 A, 16 J, 778 B and I understand this means that I have 162 contributions that reckon for state contributory pension and hence, would it be worthwhile to pay S0 PRSI (minimum 500eur/year) on a second self-employed job I could do for the next 4 years before I take early retirement (aged 56)? My calculations from the gov.ie/pensions information suggests that taking the Total Contribution Approach I would qualify for 52 *4 years = 208 + 162 = 370 / 2080 * 100 % of pension rate which would yield about 2500eur/year (this would be taxable) from age 66.
I have sent multiple emails and phone calls to welfare but their answers are very hard to understand as they want to be non-commital.
Many thanks for any and all ideas and comments.
I would be very grateful for you to offer a view on whether I have understood the situation correctly that is described below:
1. State contributory pension is (currently) only payable from age 66
2. I have a mix of contributions types 100 A1, 111 D1, 3 K1, 5 K, 616 D (at end of this year as this is current employment), 54 A, 16 J, 778 B and I understand this means that I have 162 contributions that reckon for state contributory pension and hence, would it be worthwhile to pay S0 PRSI (minimum 500eur/year) on a second self-employed job I could do for the next 4 years before I take early retirement (aged 56)? My calculations from the gov.ie/pensions information suggests that taking the Total Contribution Approach I would qualify for 52 *4 years = 208 + 162 = 370 / 2080 * 100 % of pension rate which would yield about 2500eur/year (this would be taxable) from age 66.
I have sent multiple emails and phone calls to welfare but their answers are very hard to understand as they want to be non-commital.
Many thanks for any and all ideas and comments.