News

Library of Knowledge No. 76

Changes have been introduced to the State Pension (Contributory) and from January 2024 individuals reaching the age of 66 are now required to make a decision:

• Start receiving their State Pension Benefits and no longer pay PRSI.
• Defer receiving their State Pension Benefit and continue to pay PRSI, up to a maximum age of 70.

By deferring a higher pension will be paid through additional contributions or an increase in the maximum pension receivable.

There is also improved access to State Pension Provisions for Long-Term Carers. If an individual has spent more than 20 years providing full-time care to an incapacitated person, they may be entitled to state pension provision.

From January 2025 there will be a 10-year phased removal of the Yearly Average Method, which means that all pensions will be calculated using only the Total Contributions Approach (TCA) by 2034.

These changes mean that it is essential that you are aware of how many contributions you have accrued before retirement and what they mean to you. You can request a statement of your contributions at www.mywelfare.ie using your MyGovID.

Further information available at: https://www.gov.ie/en/publication/90d8b-changes-to-the-state-pension-contributory-what-you-need-to-know/

Or for individual pension advice talk to Life Planning http://www.lifeplanning.ie

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