Working at 66

[lopin]

All,

I'm continuing to work beyond retirement and claim old age pension, I'm aware I'll have to pay tax on my pension

My question is,do I make my employer aware I'm getting pension so they can adjust my taxes or do I sort out tax liability myself

Thanks in advance

 

[ClubMan]

and claim old age pension

What exactly are you referring to here?
State old age contributory pension?
State old age non-contributory pension?
Some other Social Welfare pension?
Some other pension?

 

[lopin]

Old age contributory pension

 

[ClubMan]

See here:

Tax on your Contributory Pension is all done automatically. Dept of Social Protection notify Revenue. Revenue then reduce your tax credits and bands to account for the tax liability.

You should notify your employer when your COAP starts. They will then change your Prsi from class A to class J.

This will reduce your Prsi rate to zero.

 

[Marsupial]

y question is,do I make my employer aware I'm getting pension so they can adjust my taxes or do I sort out tax liability myself

Your employer isn't allowed to adjust your tax credits without Revenue approval. So better to take ownership of your own tax affairs!

I advise informing Revenue (email or through ROS) that you're been awarded a SCP <give weekly amount> with effect from <date> and asking them to adjust your TCC accordingly.

As for PRSI, your employer should be notified by the DSP that you're no longer liable for Class A PRSI.

 

[thecoffeepod]

Your employer isn't allowed to adjust your tax credits without Revenue approval. So better to take ownership of you own tax affairs!

I advise informing Revenue (email or through ROS) that you're been awarded a SCP <give weekly amount> with effect from <date> and asking them to adjust your TCC accordingly.

As for PRSI, your employer should be notified by the DSP that you're no longer liable for Class A PRSI.

Just to add, there is no harm in telling the employer to adjust A to J as soon as your awarded and start getting the payments

Welfare on occasion can be slow to update revenue with the information to reduce credits etc and you could actually be getting payments but revenue haven't been notified yet and you're incorrectly paying class A

Source: work in payroll

 

[lopin]

All,

Thanks a million for taking the time to reply

My pension will be starting Jan 18th 2026 and I have max contributions (I have already been approved by social welfare for full payment including my wife qualified adult payment)

Im going to notify revenue and get my employer to change PRSI from class A to class J