I'm trying to understand how much it costs for Voluntary Contributions once l stop working at age 55 and live on a Pension + Savings.
From the material online l can find the following. As a Class A contributor l would pay 6.6% in any contribution year is a percentage of my reckonable income in the previous tax year, subject to a minimum of €500.
So, how would that work in the following example
Thanks,
From the material online l can find the following. As a Class A contributor l would pay 6.6% in any contribution year is a percentage of my reckonable income in the previous tax year, subject to a minimum of €500.
So, how would that work in the following example
- Age 54 in 2019 with an income of say €100k pa with PRSI paid through PAYE
- Age 55 in 2020. Retire on 1st July. Income for the year say €50k with PRSI paid through PAYE
- For 2020, l pay 6.6% of what l earning in 2019, so on 100k ?
- For 2021, l pay 6.6% of what l earning in 2020, so on 50k ?
- For 2022, l pay the €500 min, because l had no reckonable earnings in 2021 ?
Thanks,