The Ould Pension

Jellybaby1

Will there be anything left for us at the end of the day? Do you remember in the 60's and 70's when we were a different statistic? The population had a high rate of young people then.......that was us, US! When we were valuable.

http://www.broadsheet.ie/2016/08/16/where-is-your-pension/

ytpe2r5bxkn0c1

The problem is for the young uns. We old folk are fine but they will have to work longer. Private pension well managed is the only way out for them.

We're sitting pretty though.

Jellybaby1

The basic wage is not a living wage and won't stretch to private pensions. We are probably on the lower steps of the ladder of life. Who cares.

Rubecula

Sad JB but ditto for me.

Steve

How much do you get on the pension?

ytpe2r5bxkn0c1

Steve wrote: »

How much do you get on the pension?

Depends on the pension. State contributory is something like €12000 a year.

Private pensions vary. Mine is in the €50000 a year ballpark and got a lump sum at retirement too.

So it all depends on what type of pension you have.

Steve

Sorry, I meant the state pension, which I won't even get cos I'm self employed now despite having worked every day for 30 odd years as PAYE.

looksee

Contributory OAP is €209 for full stamps, there are partial rates for lower contributions.
Non Contributory is €219 but is means tested.

Stheno

Steve wrote: »

Sorry, I meant the state pension, which I won't even get cos I'm self employed now despite having worked every day for 30 odd years as PAYE.

You sure? It's cumulative based on PRSI payments over your working life.

You might be entitled to the non contrib pension

looksee

If you have the contributions paid you will get the contributory pension.

Steve

I'm not sure, was reading an article on The Journal recently that said once you are out of PAYE over a year it compromises it big time. I haven't researched it so don't know the facts.

ytpe2r5bxkn0c1

Steve wrote: »

Sorry, I meant the state pension, which I won't even get cos I'm self employed now despite having worked every day for 30 odd years as PAYE.

If self employed you should be paying Class S PRSI which qualifies for the Contributory Pension.

ytpe2r5bxkn0c1

Steve wrote: »

I'm not sure, was reading an article on The Journal recently that said once you are out of PAYE over a year it compromises it big time. I haven't researched it so don't know the facts.

It's based on average yearly number of contributions. Call in to Citizens Advice sometime, as they are well versed on all this.

Steve

Cheers man, I haven't got my head around it yet.

Stheno

Steve wrote: »

I'm not sure, was reading an article on The Journal recently that said once you are out of PAYE over a year it compromises it big time. I haven't researched it so don't know the facts.

Steve wrote: »

Cheers man, I haven't got my head around it yet.

Give me a shout as I'm dealing with a specialist in this at the moment, did you ever have a private pension from your PAYE work?

Steve

No, never had one.

OOh... a date?? :D:D

Yeah, I'd love to tap your experience on that sometime! trade you for some sailing tips

Stheno

Steve wrote: »

No, never had one.

OOh... a date?? :D:D

Yeah, I'd love to tap your experience on that sometime! trade you for some sailing tips

Lol, leave it a week or so, am up to my snot with work travel at the moment

Jellybaby1

They don't make it easy. We have to read all of this....

http://www.welfare.ie/en/Pages/State-Pension-Contributory.aspx

http://www.welfare.ie/en/Pages/Payments-for-retired-or-older-people.aspx

looksee

It is so complicated that the chances of figuring it out on your own are kinda minimal. I qualified for a partial contributory pension by them adding up a convoluted assortment of years of payment of various types, and thankfully several years of (old) self employed payments were included as the EU had said they had to be . I also have a partial private pension as my husband retired sick many years ago, so was on a very reduced pension (but as a teacher had no entitlement to a state pension), and I now get half of that.

Perish the thought of having to work out my tax myself next year! Incidentally, my sister who lives in the UK has someone come round to her every year from Age Concern and helps her sort out her tax - she is much better at the sums than I am to start with, I could do with him here!

Stheno

looksee wrote: »

It is so complicated that the chances of figuring it out on your own are kinda minimal. I qualified for a partial contributory pension by them adding up a convoluted assortment of years of payment of various types, and thankfully several years of (old) self employed payments were included as the EU had said they had to be . I also have a partial private pension as my husband retired sick many years ago, so was on a very reduced pension (but as a teacher had no entitlement to a state pension), and I now get half of that.

Perish the thought of having to work out my tax myself next year! Incidentally, my sister who lives in the UK has someone come round to her every year from Age Concern and helps her sort out her tax - she is much better at the sums than I am to start with, I could do with him here!

I'm also self employed and am entirely grateful to have access to a pension advisor, they literally are doing all the work for me in working out what I need to save to hit a certain level and dealing with all the tax stuff associated.

It's a nightmare unless you are familiar with it.

Steve, a few sailing tips won't cut it here :pac:

Steve

My initial reason for posting asking how mush was a friend forced to retire at 65 and had to go on the dole for a year (ambulance driver) yet could not get the pension.

Steve

Stheno wrote: »

Steve, a few sailing tips won't cut it here :pac:

???

You want beer as well??

looksee

Steve wrote: »

My initial reason for posting asking how mush was a friend forced to retire at 65 and had to go on the dole for a year (ambulance driver) yet could not get the pension.

Yes there is a strange thing where you retire at 65 and don't get a pension till 66. For the intervening year/ part year you have to apply for an interim payment - which I was not entitled to. I had no choice about retiring at 65.

Stheno

Steve wrote: »

???

You want beer as well??

Yah, and tapas

Jellybaby1

looksee wrote: »

Yes there is a strange thing where you retire at 65 and don't get a pension till 66. For the intervening year/ part year you have to apply for an interim payment - which I was not entitled to. I had no choice about retiring at 65.

I believe its called 'the dole'. Yep, we've been told himself has to apply for the dole until he is 66. He's never been on the dole in his life so it will be quite a shock to his system. I on the other hand have, so unfortunately its familiar turf for me.

Masala

Jellybaby1 wrote: »

I believe its called 'the dole'. Yep, we've been told himself has to apply for the dole until he is 66. He's never been on the dole in his life so it will be quite a shock to his system. I on the other hand have, so unfortunately its familiar turf for me.

Tell him not to feel bad about it!! He is entitled to it having worked all his life paying into the system....

When the time comes... I'll be walking in with my head held high!!

Jellybaby1

Masala wrote: »

Tell him not to feel bad about it!! He is entitled to it having worked all his life paying into the system....

When the time comes... I'll be walking in with my head held high!!

Best way I guess! Flags flying, whistles blowing!

Rubecula

Jellybaby1 wrote: »

Best way I guess! Flags flying, whistles blowing!

Ladies sighing, bowels flowing.....:eek:

(well poor ould sod was in line for hours)

looksee

When I started Further Education teaching we had to sign on for the summer as we were only paid for hours worked. (Quite well paid mind you ) but there was something a bit disheartening going into the Social and standing in line with people who had been your students the previous week!

Jellybaby1

A little more to read here:

http://www.broadsheet.ie/2016/08/16/where-is-your-pension/

Geuze

looksee wrote: »

Contributory OAP is €209 for full stamps, there are partial rates for lower contributions.
Non Contributory is €219 but is means tested.

Please note that the 2016 SP is 233.30, up 3.00 from 2015.

Please note that last year the non- con pension was 11 euro less than the contributory pension, at 219 pw.

Geuze

Steve wrote: »

Sorry, I meant the state pension, which I won't even get cos I'm self employed now despite having worked every day for 30 odd years as PAYE.

Please note that with 30 years paying PRSI, it is extremely likely you will get a State Pension.

What makes you think otherwise?

Geuze

Steve wrote: »

I'm not sure, was reading an article on The Journal recently that said once you are out of PAYE over a year it compromises it big time. I haven't researched it so don't know the facts.

It's true that large gaps in your PRSI record don't help.

But you say that you paid PRSI for 30 consecutive years?

By the way, it's PRSI that matters for pensions, not tax.

Geuze

Steve wrote: »

My initial reason for posting asking how mush was a friend forced to retire at 65 and had to go on the dole for a year (ambulance driver) yet could not get the pension.

Yes, the Pension age was increased to 66, but many people still retire at 65.

Please note that these workers will likely transfer to JSB at 65, not the " dole" JSA.

Steve

Geuze wrote: »

It's true that large gaps in your PRSI record don't help.

But you say that you paid PRSI for 30 consecutive years?

By the way, it's PRSI that matters for pensions, not tax.

Yes I'm paying PRSI for 30 years, mostly as paye but recently as self employed. Maybe I got the wrong info.

I probably need to see a tax accountant... great, more expense.

Jellybaby1

I know, all I do is give you oodles to read but maybe there is something relevant here Steve:

http://www.citizensinformation.ie/en/reference/checklists/checklist_entitlements_and_services_for_self-employed_people.html

I hope you don't have to pay to find out something so simple.

Steve

The problem is making time to read it JB. Appreciate the info, really, thanks a mill!

looksee

The 'recently self employed' bit is now relevant as the 'stamp' you pay is sufficient to cover pension contributions. But even so, if you were paying the full contribution for 30 years you are well inside the pension requirement.

nompere

Steve wrote: »

The problem is making time to read it JB. Appreciate the info, really, thanks a mill!

The department will tell you all about your PRSI contribution record if you ask them online - fill this form in and you'll get a letter back from them.

https://www.welfare.ie/en/Pages/secure/RequestSIContributionRecord.aspx

looksee

Its true, once you start to make enquiries it is not as complicated as it looks.

Stheno

Stheno wrote: »

I'm also self employed and am entirely grateful to have access to a pension advisor, they literally are doing all the work for me in working out what I need to save to hit a certain level and dealing with all the tax stuff associated..........

I hope they have pointed you in the direction of an executive pension ?
If not find another.

looksee

What is the difference between an ordinary pension and an executive pension?

ytpe2r5bxkn0c1

looksee wrote: »

What is the difference between an ordinary pension and an executive pension?

An executive pension is geared towards company executives and owners. You pay in but the company, as an entity in it's own right, can pay in too on your behalf. The self employed person would need to be a limited company first though, as far as I recall, and many self employed are not.

looksee

looksee wrote: »

What is the difference between an ordinary pension and an executive pension?

Pay in yourself get relief at the rate you pay tax, if you have an executive pension the company can contribute so you effectively get more money into the pension for less out of your pocket, essentially relief on USC & PRSI as well as the income tax.

Using crude figures, single person on €60k/annum (so paying 40% PAYE rate) who has directors pension and the company puts €10k into pension, if that was taken as salary the "executive" would have gotten €5k ish (a tad less) after tax.

Person on similar wages with normal pension puts €10k in they get €4k relief, so they doing without €6k into the pocket to get €10k into the pension.

Fairly decent tax efficiency in favour of ex pension, essentially costs you less out of the pocket as it's more tax efficient. Can also get much more money into them compared to a normal pension while availing of tax relief. To really load up a normal pension you need to be 40/50+ or you'll exhaust the TR limits.

You can be a director of an umbrella company and set up an executive pension so within reach of many self employed people, not all of course.

campingcarist

I didn't have enough PRSIs to qualify for a contributory pension (worked abroad for many years and never bothered about a pension) so I get the non contributory pension plus a living alone allowance plus some of the other benefit packages and get 231 euros per week. I'm 70 years old. In the winter this will increase allowing for winter allowances.

I own my own apartment so, apart from my management fees and electricity and an internet dongle at 25 euros per month (so I can travel and always have my connection) I really have no other main expenses apart from food which costs me less than 25 euros a week.

The free travel pass is excellent and saves me from having to have my own transport. 20 minutes into the city and I can shop or do whatever I want.

Jellybaby1

I'm wondering how you can live only on a govt. pension if you have to pay for....

House buildings insurance
House contents insurance
Home maintenance
Car insurance / tax / petrol / licence / service / NCT (on one or two cars)
Life insurance (for one or two people)
Private medical insurance
GP Fees / Hospital charges / other medical bills / prescriptions
Electricity
Gas
Water
Mobile phones plus Landline rental and charges (depending on bundle)
TV licence and TV service provider (depending on bundle)
Internet provider (depending on bundle)
Groceries
What else?

The prospect is depressing me already.

campingcarist

Jellybaby1 wrote: »

I'm wondering how you can live only on a govt. pension if you have to pay for....

House buildings insurance
House contents insurance
Home maintenance
Car insurance / tax / petrol / licence / service / NCT (on one or two cars)
Life insurance (for one or two people)
Private medical insurance
GP Fees / Hospital charges / other medical bills / prescriptions
Electricity
Gas
Water
Mobile phones plus Landline rental and charges (depending on bundle)
TV licence and TV service provider (depending on bundle)
Internet provider (depending on bundle)
Groceries
What else?

The prospect is depressing me already.

House buildings insurance Management fees for apartment (about 1,700 p.a.)
House contents insurance Don't have.
Home maintenance Management Fees
Car insurance / tax / petrol / licence / service / NCT (on one or two cars) Don't have a car.
Life insurance (for one or two people) Don't have
Private medical insurance Don't have - Aged over 70 I rely on my medical card.
GP Fees / Hospital charges / other medical bills / prescriptions Prescription fees 12.50 per month (5 items at 2.50)
Electricity Yes, I have to pay my electric and get the winter allowance as well
Gas Don't have gas
Water Minimal charge as single person living alone.
Mobile phones plus Landline rental and charges (depending on bundle) Mobile phone is pay as you go - most people phone me; I seldom make a call. I really have the phone just for emergencies (but haven't had one yet); no landline.
TV licence and TV service provider (depending on bundle) Over 65s have free TV licence and I only watch Freeview - I wouldn't bother with any Sky type services.
Internet provider (depending on bundle) 24.99 per month for Dongle which I can take anywhere and get my internet.
Groceries Less than 25.00 per week
What else?
Eating out - Yes, I like to eat out once or twice a week costs about 30 euros

Isn't life great when you are retired and have all the freebies!!

Jellybaby1

Woah! you're cheap to keep! I'm seriously thinking of moving in with you! By the way, I don't think a pension would pay for your management fees and rent. Our mortgage is paid off thank goodness. Himself just would not do with Freeview, but we don't have Sky either, just something in between. Also we've never thought of giving up the landline mainly as we both find it hard to hear on mobile phones even turning up volume, we prefer discussion on the landline. We will have to seriously tighten our belts as I can see our lifestyle can't continue as it is.

campingcarist

Jellybaby1 wrote: »

Woah! you're cheap to keep! I'm seriously thinking of moving in with you! By the way, I don't think a pension would pay for your management fees and rent. Our mortgage is paid off thank goodness. Himself just would not do with Freeview, but we don't have Sky either, just something in between. Also we've never thought of giving up the landline mainly as we both find it hard to hear on mobile phones even turning up volume, we prefer discussion on the landline. We will have to seriously tighten our belts as I can see our lifestyle can't continue as it is.

I don't pay rent, I own my apartment. So, basically, my expenses are as set out in my last post.

I actually spend more time on my computer than I do watching TV. I enjoy Judge Judy and a good cowboy film (preferable with Clint Eastwood). However, I must say that I don't log onto Boards.ie very much - I find it that interesting - there is much more to life than Boards!

Steve

Seriously thinking of moving to the Canaries to retire.

50-60k will get you a comfortable villa there with all in services for around 2k/yr.

Food and the cost of living is ridiculously cheap and the weather is guaranteed to be great.

looksee

Steve wrote: »

Seriously thinking of moving to the Canaries to retire.

50-60k will get you a comfortable villa there with all in services for around 2k/yr.

Food and the cost of living is ridiculously cheap and the weather is guaranteed to be great.

Ah but wouldn't you miss the...ah...um...well. Hm. Any space in your suitcase?

(Not true, I actually would miss quite a lot of things here )