State pension for PAYE vs PS vs unemployed vs self employed

Hairy Japanese BASTARDS!

Can someone clarify the state pension situation please?

I'm an employee at a company. I max out my contribution at 15% and my employer adds an additional 10%. When I retire, will I be entitled to a state pension at 68 or will they tell me to take a hike because I have enough in my own pension? I also have substantial savings which were hard worked for.

What about self employed people? My dad is self employed. He saves and has a significant nest egg. If my understanding is correct, he won't get a penny when he's 68 from state pension until all his savings are depleted. Unfair if you ask me.

My mam has been a housewife her whole life (still married to my dad). Same situation as above probably.

Public sector confuses me more. A ps worker can retire at any age before 65 and must be retired by 65. Their pension is calculated as (years' service ÷ 80) X final salary. Say for example a teacher retries at 50 after 29 years' service on €65,000. The pension will be
(29÷80)x€65,000=€23,562.50 when 50 years old. However, when they turn 68, the public sector pension is reduced by the amount of state pension they're getting, or do they get the state pension on top of this? I'm specifically talking about post 2013 entrants to the PS.

mp22

Item 1 https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/state_pension_contributory.html

Item 2, self employed should elect to pay the minimum yearly prsi payment then they are able to claim as in item 1 above

Item 3,Dont have a clue

Get Real

Hairy Japanese BASTARDS! wrote: »

However, when they turn 68, the public sector pension is reduced by the amount of state pension they're getting, or do they get the state pension on top of this? I'm specifically talking about post 2013 entrants to the PS.

They don't get the state pension on top no. Say, as you say, their pension is c. 23k a year. At 68, they won't get the 23k plus 12k. They'll still be on 23k or whatever it is at the time.

Geuze

Hairy Japanese BASTARDS! wrote: »

I'm an employee at a company. I max out my contribution at 15% and my employer adds an additional 10%. When I retire, will I be entitled to a state pension at 68 or will they tell me to take a hike because I have enough in my own pension? I also have substantial savings which were hard worked for.

What about self employed people? My dad is self employed. He saves and has a significant nest egg. If my understanding is correct, he won't get a penny when he's 68 from state pension until all his savings are depleted. Unfair if you ask me.

My mam has been a housewife her whole life (still married to my dad). Same situation as above probably.

Public sector confuses me more. A ps worker can retire at any age before 65 and must be retired by 65. Their pension is calculated as (years' service ÷ 80) X final salary. Say for example a teacher retries at 50 after 29 years' service on €65,000. The pension will be
(29÷80)x€65,000=€23,562.50 when 50 years old. However, when they turn 68, the public sector pension is reduced by the amount of state pension they're getting, or do they get the state pension on top of this? I'm specifically talking about post 2013 entrants to the PS.

1. assuming you have enough PRSI paid at class A, you will receive the State Pension. Any other work pension you may have is on top of that.

2. self-employed workers pay PRSI class A, and so will get the SPC, again assuming they have enough PRSI paid.


The SPC is not means-tested. Michael O'Leary will get the SPC.


3. Any PS hired after April 1995 pays full-rate PRSI at class A, and so will get the SPC.

Geuze

Hairy Japanese BASTARDS! wrote: »

Public sector confuses me more. A ps worker can retire at any age before 65 and must be retired by 65. Their pension is calculated as (years' service ÷ 80) X final salary. Say for example a teacher retries at 50 after 29 years' service on €65,000. The pension will be
(29÷80)x€65,000=€23,562.50 when 50 years old. However, when they turn 68, the public sector pension is reduced by the amount of state pension they're getting, or do they get the state pension on top of this? I'm specifically talking about post 2013 entrants to the PS.

A PS can't retire at 50, unless due to ill-health.

Some PS can retire at 60, but they won't get the SPC until the SPC age.

A teacher retiring with full service of 40 years, on 60k, will get a 30k pension, which is made up of 13k SPC and 17k work pension.

RJellybean

Public sector confuses me more. A ps worker can retire at any age before 65 and must be retired by 65. Their pension is calculated as (years' service ÷ 80) X final salary. Say for example a teacher retries at 50 after 29 years' service on €65,000. The pension will be
(29÷80)x€65,000=€23,562.50 when 50 years old. However, when they turn 68, the public sector pension is reduced by the amount of state pension they're getting, or do they get the state pension on top of this? I'm specifically talking about post 2013 entrants to the PS.[/QUOTE]

I'm Public sector, joined in 2006. The pension i'm entitled to includes the state pension. The state pension only kicks in when i'm 68 so if i retire at the age of 65,66 or 67 i will get my pension from the job less however much the state pension is. I'm paying into an AVC to make up the difference as i don't want to be working till at least 68. The pension i will get before the state pension kicks in is approx 10K per year.

Bob the Seducer

Maybe somebody else can confirm if this is correct in relation to the regular civil service.

My understanding is that post 2013 your pension is based on 50% of your career average, so if you started on 22,000 and finished on say 46,000 you might average out at 40,000 over your 40 years service. A career average of 40,000 would mean a pension of 20,000 (made up of 13,000 contributory pension and 7,000 civil service).

Geuze

Bob the Seducer wrote: »

Maybe somebody else can confirm if this is correct in relation to the regular civil service.

My understanding is that post 2013 your pension is based on 50% of your career average, so if you started on 22,000 and finished on say 46,000 you might average out at 40,000 over your 40 years service. A career average of 40,000 would mean a pension of 20,000 (made up of 13,000 contributory pension and 7,000 civil service).

I don't think it's as simple as that, but that is the idea, yes.

All info here:

https://singlepensionscheme.gov.ie/

https://singlepensionscheme.gov.ie/for-members/scheme-information/scheme-booklet/

By the way, it applies to all public servants, not just the civil service.

Geuze

Bob the Seducer wrote: »

Maybe somebody else can confirm if this is correct in relation to the regular civil service.

My understanding is that post 2013 your pension is based on 50% of your career average, so if you started on 22,000 and finished on say 46,000 you might average out at 40,000 over your 40 years service. A career average of 40,000 would mean a pension of 20,000 (made up of 13,000 contributory pension and 7,000 civil service).

https://singlepensionscheme.gov.ie/wp-content/uploads/2020/05/Standard-Accrual-Member-Booklet.pdf

See p16.

Hairy Japanese BASTARDS!

Geuze wrote: »

I don't think it's as simple as that, but that is the idea, yes.

All info here:

https://singlepensionscheme.gov.ie/

https://singlepensionscheme.gov.ie/for-members/scheme-information/scheme-booklet/

By the way, it applies to all public servants, not just the civil service.

I always thought public service was synonymous to civil service.

IE, bus drivers and teachers are the same.
What's the difference?

Geuze

Hairy Japanese BASTARDS! wrote: »

I always thought public service was synonymous to civil service.

IE, bus drivers and teachers are the same.
What's the difference?

Civil Service = 35,000 staff approx in the Departments.

The wider public service is the civil service plus HSE, teachers, Gardai, soldiers, councils, etc.

PS = 300,000 staff

The public sector is wider still, and includes the semi-states.

Note that the semi-states mostly have their own, typically funded pensions.