Saturday 16 December 2017

Seven things you should know about the State pension

You may not qualify for the full State pension if you looked after children full-time in the home before April 1994 (Maarten Wouters/Getty Images)
You may not qualify for the full State pension if you looked after children full-time in the home before April 1994 (Maarten Wouters/Getty Images)
Louise McBride

Louise McBride

There are two types of State pension - contributory and non-contributory. As the contributory pension is not means-tested, it is probably the easier one to get.

2 Any gap in your social insurance record can make it harder for you for qualify for the full contributory State pension. So should you have had a summer job in your teens before going to college or travelling for a number of years, you could lose out on the full State pension - even if you spent most of your life working in Ireland.

3 You may not qualify for the full State pension if you looked after children full-time in the home before April 1994. Any years spent looking after children in the home since early April 1994 shouldn't work against you for the State pension, however - as long as the children you looked after were under the age of 12 or incapacitated. This is because of the Homemaker scheme - a scheme introduced to make it easier for stay-at-home parents to qualify for the State contributory pension. Remember you may qualify for the widow's or widower's State pension if your spouse or partner dies before you.

4 You can make voluntary social insurance contributions should you decide to leave work for any reason - or should you be self-employed and not earning enough to have to pay PRSI. This will prevent you building up a gap in your social insurance record.

5 You won't necessarily build up a gap in your social insurance record if you become unemployed, sick or go to college - you may qualify for 'credits' similar to the social insurance contributions you paid while working.

6 Should you retire in 2028 or later, you won't get the State pension until you're 68 years old.

7 There are concerns about the sustainability of the Irish State pension, so there are likely to be changes on the cards for the pension in the future.

Sunday Indo Business

Promoted Links

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Also in Business