Irish Taxi Forum
Public Area => Taxi Talk => Topic started by: John m on September 20, 2022, 07:17:35 am
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Minister for Social Protection Heather Humphreys is bringing proposals to Cabinet to ensure the State pension age remains at 66 - rather than 68 as recommended by the Pension Commission.
It is understood Ms Humphreys is also recommending a flexible pension age, in which people who choose to work beyond 66 years of age receive higher rates of pension payment.
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.
Long-term carers will be able to qualify for a contributory pension for the first time.
It is understood that the amount by which PRSI would have to increase to fund the initiative will only be determined later in the year, following an actuarial review.
However, a source has told RTÉ News that there would be no PRSI increase in the forthcoming budget, and possibly not in the following budget due to the cost-of-living crisis.
The new system would require new legislation and IT systems, so it is understood that the measures will come into force in January 2024.
Setting the pension age is a political hot potato which caused chaos in the last General Election and has been a source of some controversy between the Coalition parties.
Last July, Taoiseach Micheál Martin said he believed the State pension age should not go beyond the age of 66, saying there was a "clear groundswell" within his party to retain it.
The previous September, Tánaiste Leo Varadkar told his Fine Gael party that he would oppose massive PRSI hikes for the self-employed, designed to help pay the State pension.
It is understood the minister's motivation in backing a flexible model, rather than compelling people to retire at 66, is because the qualification for a pension is an arbitrary date and the policy is not in line with EU norms.
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I wonder what the deal will be for self employed .If we take the pension at 66 and continue to Work and pay tax and PRSI will we get anything extra when we retire ?
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I'm not good at social welfare stuff.
"The weekly State pension would increase from €253 for 66-year-olds".
But do the state pay me 253 when I hit 66, regardless if I'm working or not ?
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You can start receiving your state pension from your state pension age (currently 65 and increasing to 67 from 2028) regardless of whether you choose to retire then or not.
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I wonder what the deal will be for self employed .If we take the pension at 66 and continue to Work and pay tax and PRSI will we get anything extra when we retire ?
Currently no PRSI for pensioners working or not, although a think tank has advised introducing same.
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@ JohnM: I think you'd hvae to see a specialist about questions like that. The whole area is incredibly complicated (see link at bottom) and any general advice you get on here is likely to be wrong or out of date by the time you retire.
I'm not good at social welfare stuff.
"The weekly State pension would increase from €253 for 66-year-olds".
But do the state pay me 253 when I hit 66, regardless if I'm working or not ?
Depends on your stamps. if you have enough stamps, you get (what I call) a no-questions asked full pension (contributory). If you're short, it's means-tested and you might not get the full whack (non-contributory).
https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/state_pension_contributory.html (https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/state_pension_contributory.html)
The State Pension (Contributory) is paid to people from the age of 66 who have enough (PRSI) contributions. It is sometimes called the old-age pension. The State Pension (Contributory) is not means tested. You can have other income and still get it.
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I'm not good at social welfare stuff.
"The weekly State pension would increase from €253 for 66-year-olds".
But do the state pay me 253 when I hit 66, regardless if I'm working or not ?
Depends on your stamps. if you have enough stamps, you get (what I call) a no-questions asked full pension (contributory). If you're short, it's means-tested and you might not get the full whack (non-contributory).
I have made tax returns every year since I was 15 fer the past 42 years, so I'm guessing that would qualify me on the stamp thing ?
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The new rule in a nutshell .You need 40 years contribution UK or EU stamps apply as well .If you have 40 years full stamps you get 100% Contributory pension .But if you dont I need to check if you were on the Dole and Credited a stamp are they treated as Full Stamps .so lets say you have 30 years full stamps and 10 years credits .You may possibly get 75% Contributory Pension and the other 25% will be means tested .So if you continue to work after 66 you may lose the Means tested amount of your Old age Pension .If you have a My Welfare page you can go in and request your PRSI contribution status .Last year we were credited a Covid Stamp and some this year will be below the PRSI thresh hold for 2021 and Prsi Exempt .Might be an Idea to ask the Status of those Credits are they considered Full stamps ?
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It might be no harm for ye all to get a PRSI statement and you can get it from welfare.ie
I went for an eye test during the year. Normally the test is free if you've paid stamps but 'the computer' said I had paid NO stamps. I got on the phone to Welfare and eventually ended up with someone in Waterford. They looked at the computer and went, 'Oh yeah, we never updated your file'. Then she pressed a button and, hey presto, I got 52 stamps added to my account >:(
https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/state_pension_contributory.html (https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/state_pension_contributory.html)
The rules are really complicated and my next comment relates to the rules from a few months back. When I looked at it, you needed something like 2080 stamps. Looking at the statement I got, I think I'm gonna be ~100 stamps short of getting the full contributory pension so I'll be looking to make additional voluntary contributions.
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Thats sort of what my initial question was if you were short two years 100 stamps could you work till you were 68 and delay taking the Pension pay PRSI and achieve the Full qualifying amount then take your Full Improved Pension two years later if the Sums added up ?Or if you are short take your reduced Pension but continue to work and Pay PRSI are you credited with more full stamps and when you make up the short fall you go on full money ?
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You have to make your application to the Government Dept. in Sligo,a year before you are eligible to retire.They will soon tell you,what you are entitled to and when!
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I think the current proposal to extend the retirement age is just a suggestion at the moment so I don't know how it will work if you're short a few stamps at the 65 or 67 years of age.
But I want to make sure I have enough stamps by 65! The contributory pension (as I understand it) is not means-tested and you get the full whack, no questions asked. I think you can still work the taxi and just pay extra tax - you keep the full pension. On the other hand, the non-contributory pension is means-tested and if you have savings or you keep working the taxi, the amount might go down? I could be wrong on this so that's why I want to talk to an accountant.
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I have made tax returns every year since I was 15 fer the past 42 years, so I'm guessing that would qualify me on the stamp thing ?
What is this Stamp thing ye speak of ?
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stamp = PRSI credit.
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I have made tax returns every year since I was 15 fer the past 42 years, so I'm guessing that would qualify me on the stamp thing ?
What is this Stamp thing ye speak of ?
Actually don't answer that, my accountant can work it out if I make it to 66 !
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https://services.mywelfare.ie/en/topics/statements-refunds-and-calculators/contribution-statement/
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https://services.mywelfare.ie/en/topics/statements-refunds-and-calculators/contribution-statement/
I tried that Fookin thing last year regarding PUP, but ya need a services card fer it and to get a services card you need an appointment and an interview, I never bothered.
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https://services.mywelfare.ie/en/topics/statements-refunds-and-calculators/contribution-statement/
I tried that Fookin thing last year regarding PUP, but ya need a services card fer it and to get a services card you need an appointment and an interview, I never bothered.
Card is handy gets you access to loads of on line stuff .I think you will need it if you go to get a pension or any other Welfare PUP was an Exception .Not sure if you now need one to renew a Driving Licence .
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The PSC is a great yoke to have --I was able to renew my passport in 5 days last month--instant access to all Gov services Rev/Welfare and as you approach 66 they send you a new one with Free Travel as an added logo --very efficient !
The Pension people in Sligo as also very good and issue you a statement in about 3 weeks and don't forget if you're living alone you get an extra 20 every week !
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It might be no harm for ye all to get a PRSI statement and you can get it from welfare.ie
I went for an eye test during the year. Normally the test is free if you've paid stamps but 'the computer' said I had paid NO stamps. I got on the phone to Welfare and eventually ended up with someone in Waterford. They looked at the computer and went, 'Oh yeah, we never updated your file'. Then she pressed a button and, hey presto, I got 52 stamps added to my account >:(
https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/state_pension_contributory.html (https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/state_pension_contributory.html)
The rules are really complicated and my next comment relates to the rules from a few months back. When I looked at it, you needed something like 2080 stamps. Looking at the statement I got, I think I'm gonna be ~100 stamps short of getting the full contributory pension so I'll be looking to make additional voluntary contributions.
I also had a change of specs a few weeks back and was denied the PRSI part,I was working PAYE for a few months last year but haven't done my returns for 2021 yet....I might yet appeal it when I get my returns sorted.
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They go back 2 years so it's your 2020 returns they look at for the eye test for self-employed.
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They go back 2 years so it's your 2020 returns they look at for the eye test for self-employed.
My 2020 returns were filed and the debt "warehoused"....payment due by Dec 2022,I worked up to and including March14th 2020,was on the PUP which was taxable and worked a PAYE job from Sept-Dec and I know that my accountant included the €500 minimum PRSI contribution...so if they do indeed go by 2020 figures I should be covered!!
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https://services.mywelfare.ie/en/topics/statements-refunds-and-calculators/contribution-statement/
I tried that Fookin thing last year regarding PUP, but ya need a services card fer it and to get a services card you need an appointment and an interview, I never bothered.
I applied for a statement online through that link Ken,I only have a basic GovID account but no services card and it says it will send the statement to me in the post.
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They 'forgot' to update my file and that's why my stamps went missing. Might be worth a phone call to make sure your file is up-to-date!
https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/disability_and_illness/treatment_benefit_scheme.html (https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/disability_and_illness/treatment_benefit_scheme.html)
From the age of 29 onwards, you must have at least 260 paid contributions and
- At least 39 paid or credited contributions in the governing contribution year (2020 is the governing contribution year for claims made in 2022) or
- 26 paid contributions in each of the second and third last contribution years. For claims made in 2022, the second last contribution year is 2020 and the third last contribution year is 2019.
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She also signalled that previously-shielded income, such as earned income for those over the age of 66, would be considered for PRSI. Sinn Féin spokeswoman on enterprise Louise O’Reilly said that a worker who deferred their pension until age 70 “means you’d have to live well past 82 to make back the pension forgone while working”.
Cant see any advantage to self employed people putting off taking the Pension @66
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She also signalled that previously-shielded income, such as earned income for those over the age of 66, would be considered for PRSI. Sinn Féin spokeswoman on enterprise Louise O’Reilly said that a worker who deferred their pension until age 70 “means you’d have to live well past 82 to make back the pension forgone while working”.
Cant see any advantage to self employed people putting off taking the Pension @66
I was thinking the same.