Old Age Pension: How much and when?
The Old Age Contributory Pension is a benefit you have paid for through PRSI contributions during your working life. Here we look briefly at what you will get and when you will get it? The big question you need to ask yourself however is will it be enough?
How Much
The Old Age Contributory Pension is not means tested and is paid from age 66 onwards. It is covered by Class A PRSI (employees) and Class S (self employed and company owners). The rate as at June 2014 is €230.30 per week rising to €436.60 if you have a dependent adult over 66. More rates and information can be found on www.welfare.ie
So when will I qualify?
The Social Welfare and Pensions Act 2011 made a number of changes to the qualifying age for State pensions. The qualifying age will rise to 67 in 2021 and 68 in 2028. So:
- If you were born on or after 1 January 1955 the minimum qualifying State pension age will be 67.
- If you were born on or after 1 January 1961 the minimum qualifying State pension age will be 68.
So what are my options?
If you are looking for a reasonable income in retirement and in particular if you have any aspirations of retiring early you may in fact be found wanting if you were to depend on the state pension.
Most people will have some plan for retirement. This could be an investment property, personal savings or an expected inheritance. However with tax relief on entry, tax free investment growth and tax efficient drawdown the simple pension plan is the most robust and dependable means of providing a retirement fund….assuming you are getting the right advice.
Your plan needs to start with identifying and quantifying your long term goals. To support this a Financial Broker (such as MBC Financial) can put a realistic and achievable plan in place.
Contact us to today where we can arrange for a Financial Adviser to contact you to arrange an appointment to discuss your own unique requirements!
Tel : 021 427 5347