State pension - PRSI contributions question.

[Rebelrebel]

I am a PAYE worker and I would like to retire early. I recently received my PRSI contribution statement. It shows I have approx 20 years of full contributions and a few years of partial contributions.

My first contributions were when I was 16 and then there are no contributions for about 8 years prob due to working cash in hand part time and summer jobs or going abroad for summers while in college to work. So I would probably be looking at the total contributions approach for state pension.

If I was looking to retire early I would be well short of contributions for a full state pension.

I do have a rental property for which I pay tax and PRSI.

My question is if I was to quit my PAYE job and keep my rental property and pay tax and PRSI, will these rental contributions count towards the PRSI contributions required to be eligible for the state pension?

 

[NoRegretsCoyote]

Yes. If you make rental profits >€5k you pay class S PRSI which counts as 52 annual credis toward state pension.

 

[Rebelrebel]

Thank you. That is great to know. My wife and I own the rental property. Does that mean we would need to see >10k profit on the property for me to get the 52 class S contributions?

 

[NoRegretsCoyote]

Basically yes.

Pretty much any rental will see you gross at least €10k every year.

 

[Rebelrebel]

Thanks again. Really helpful and really glad to hear it.

 

[NoRegretsCoyote]

Just remember you don't pay Class S PRSI if you move abroad in early retirement, so don't accrue the benefit.

 

[lady17]

I would contact the prsi records department in Donegal. Their number is 01) 4715898. Ask them if you could make voulintery contributions to cover the time you were not paying a stamp. I would also ask them if you retired early could you make voulintery contributions from say 60 to your pension age. I know their are a number of different stamps classes that you can pay depending on the nature of employment and some stamps are reckonable contributions for a State pension ( Contributory) and some are not. The more reckonable paid contributions for a pension you have the better as these go towards the state pension - contributory. The state pension contributory as far as I know is not means tested so you will get x amount per week no matter what other income sources, savings ect you have then.