State Pension - deferral proposal, up to age 70

Sharpie

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24
But the only hard information that we have to date is that:

the state pension age will remain 66​
people who continue working beyond this age will get a ‘bonus’ for each year they stay in employment​
Heather Humphreys and her officials are still working on the new system which will be announced later this year.​
At this point, the rest is just speculation.

As you said yourself earlier in this thread, "I guess we’ll just have to wait for the detail."!
Unless SF get in at the next election , which seems very likely , and they reduce state pension age to 65 , if they keep their promise. Don't agree with their pension proposals , but its very likely it will happen as its a big selling point for them at the voting booth.
 

Groucho

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203
Unless SF get in at the next election , which seems very likely , and they reduce state pension age to 65 , if they keep their promise. Don't agree with their pension proposals , but its very likely it will happen as its a big selling point for them at the voting booth.

Presumably the changes in PRSI would need to be included in the 2022 Finance Bill; and the changes in State Pensions will require an amendment to the Pensions Act - both of will have been enacted long before (if) the Magic Money Tree Party takes control .
 

fayf

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Messages
318
Some proposals on this:

The weekly State pension would increase from €253 for 66-year-olds to €266 for 67-year-olds; €281 for 68-year-olds; €297 for 69-year-olds; and €315 for 70-year-olds - a combined 24% increase.”


It would take circa 20 years, to recoup the lost annual state pension, if you retired say 1 year after 66, probably not worth it, if want to retire at or before 66, but may suit others who want to work on, after 66.

EDIT:
Above proposals, now approved:
 
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time to plan

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467
Their contributions are used to pay the pensions of those who receive pensions at the time

A lot of people think that their PRSI contributions are put aside into a cookie jar to pay THEIR pension when they retire - this is not the case.
All PRSI contributions are used to pay the pensions and other social welfare payments immediately

Pensions are paid from the contributions of those working - at the moment there are 4-5 workers paying in per pension being paid out but in 20 years it will be 2-3 workers paying in per pension being paid out. Something will have to give - either higher PRSI, lower pension or longer working life or a combination of these
In some cases, do they not also go into widows pensions?
 

Blackrock1

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1,038
But the only hard information that we have to date is that:

the state pension age will remain 66​
people who continue working beyond this age will get a ‘bonus’ for each year they stay in employment​
Heather Humphreys and her officials are still working on the new system which will be announced later this year.​
At this point, the rest is just speculation.

As you said yourself earlier in this thread, "I guess we’ll just have to wait for the detail."!
what about someone who reached 66 and didnt have enough stamps but has continued to work, will they now qualify by virtue of earning extra stamps beyond 66?
 

Groucho

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203
what about someone who reached 66 and didnt have enough stamps but has continued to work, will they now qualify by virtue of earning extra stamps beyond 66?

If they reach the magic 520 then presumably they will ...... unless the rules are changed, of course! In which regard, I was interested to hear Heather mentioning the total contributions approach being phased in (over the next decade - at long last!) during her interview on the RTE lunchtime news.
 

Groucho

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203
Looks as though Mary Lou's spin doctors weren't around this morning when she came out with with the following bizzare claim:

"Sinn Féin leader Mary Lou McDonald described the proposal as a “almost a Trojan horse to raise the pension age in reality to the age of 70″. She said working people of all ages “will be very very unsettled to hear that in a civilised, prosperous, indeed a wealthy society the age of retirement, the choice of retirement is at the age of 65 not 70. It seems to me the Government are trying to pull a manoeuvre”."

I wonder whether the "Trojan horse" that she was referring to was called Shergar!
 
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michaelm

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1,971
what about someone who reached 66 and didnt have enough stamps but has continued to work, will they now qualify by virtue of earning extra stamps beyond 66?
Such details, when they work them out, will be interesting. I'd like to have seen an option to take an actuarially reduced state pension before 66.
 

ryaner

Registered User
Messages
507
Some proposals on this:

The weekly State pension would increase from €253 for 66-year-olds to €266 for 67-year-olds; €281 for 68-year-olds; €297 for 69-year-olds; and €315 for 70-year-olds - a combined 24% increase.”


It would take circa 20 years, to recoup the lost annual state pension, if you retired say 1 year after 66, probably not worth it, if want to retire at or before 66, but may suit others who want to work on, after 66.

EDIT:
Above proposals, now approved:
Has the full text of what was approved been released yet? There is a lot of details missing currently, and while using todays Euro figures helps a reader, depending on how it is actually written there is room for the 70 year old payment becoming the new baseline overtime.
 

fayf

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Messages
318
Looks as though Mary Lou's spin doctors weren't around this morning when she came out with with the following bizzare claim:



I wonder whether the "Trojan horse" that she was referring to was called Shergar!
Ya, Mary Lou, as usual, leaves out wholly relevant information, like, its unbelievable, but there are actually some, who want to work beyond 65, this plan is far from perfect, but certainly adds more options/choices.

There are also those, who don’t have enough in Private pension, or don’t have one at all, and have an option here, to work beyond 66, and end up with up to, an extra €3.2 k per year, if they are able & willing, to continue working. That relatively modest extra amount, can make a big difference.
 

Conan

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1,460
If they reach the magic 520 then presumably they will ...... unless the rules are changed, of course! In which regard, I was interested to hear Heather mentioning the total contributions approach being phased in (over the next decade - at long last!) during her interview on the RTE lunchtime news.
In most cases, a minimum of 520 paid contributions is required to get even the minimum State Pension. Under the Total Contribution Approach, 10 years of contributions will get 10/40ths (25%) of a pension, ie c€63pw.
 

LDFerguson

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Messages
4,390
In most cases, a minimum of 520 paid contributions is required to get even the minimum State Pension. Under the Total Contribution Approach, 10 years of contributions will get 10/40ths (25%) of a pension, ie c€63pw.

I heard yesterday that part of these new plans include - finally - the move to having only the Total Contributions Approach from 2024, but with a phase-in period.
 

Groucho

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Messages
203
I heard yesterday that part of these new plans include - finally - the move to having only the Total Contributions Approach from 2024, but with a phase-in period.

'twas truly depressing to hear Minister Heather Humphries kicking that particular can as far down the road as possible.
 

peemac

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1,315
19% of men, 12% of women die before they reach the age of 65.
I wonder where their contributions go?.
That's a UK figure. Probably similar here. It states "male" rather than "men" and the biggest age group is 15-24.
Possibly it also includes those under 15 too. And therefore the contributions come from a limited number within the 19%.

The good news is that if you hit 65 in good health your life expectancy is in the 90's
 

Steven Barrett

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4,600
I heard yesterday that part of these new plans include - finally - the move to having only the Total Contributions Approach from 2024, but with a phase-in period.
The Pensions Roadmap 2018-2023 recommended this. It is something that is agreed by all to be implemented. Here we are in 2022 and it's still not implemented and they won't implement it for 6 years after the recommendation.


As for the State pension, the only real benefit I can see for deferring your State pension is if you don't have enough stamps.

But the whole handling of the State pension is a mess, ever since it became a political issue. The solution is now to tax people more to pay for keeping the pension age at 66. Mary Lou wants to bring it back to 65. The transitory pension is gone since 2014. She didn't say anything about it at the time. Nor did she say anything in 2011 when legislation increased the pension age to 67 from 2021. These changes were logical and would save future generations billions. Now the politicians are involved, future generations are going to be lumbered with the cost of paying for these pensions.


Steven
www.bluewaterfp.ie
 

dubdub123

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Messages
362
Ive seen comments about this proposal with people mentioning losing out on money as you are not claiming the pension.. but you could say that about every social welfare payment..
eg if im unemployed for 10 years vs being employed for thise 10 years I dont get the social welfare payments..but personally i dont feel that im missing out..
In my situation asof now my mortgage will end in my lates 60s..
If i can continue to work on reasonable salary, make AVCs then to me thats a good thing.. better than being forced to retire..
I genuinely dont understand the negativity around this
 
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