Beat the pensions timebomb by securing your state entitlements
Most people are blissfully unaware of what they require to qualify for a State Pension. Now, might be a good time to check exactly what you have to do to secure your income for your later years.
The current State Contributory Pension for a person over 66 who has a qualifying adult dependent is currently €436.39 per week or €22,687.60 per annum.
To receive the same level of pension through a private pension scheme would require an accumulated fund of around €600,000.
To build a fund of that magnitude over a 40-year working life span would require an average annual addition to the fund of €15,000 between contribution and growth whereas most people will only pay a fraction of that in the form of PRSI.
State pensions are incredibly good value but it is vital that you make the necessary PRSI contributions up to age 66.
The current qualifying age is 66 however if you were born on or after 1 January 1955 the minimum qualifying State pension age will be 67 and if you were born on or after 1 January 1961 the minimum qualifying State pension age will be 68.
Qualifying for a pension
Most will automatically qualify for a full pension but it is not unusual for people to discover, having made a pension application, that they are not eligible for the full weekly rate or their spouse or civil partner may not be entitled at all to the Adult Dependent Allowance.