Contributory state pension

Jackaroe · 25-09-2021 4:09pm #1

Hi all, I’m currently considering a redundancy offer from my employer and the plan would be to go abroad to work for 5 to 10 years then return and work here for 5 or so years to retirement. It just struck me though, am I essentially chucking away a right to a state pension pension by doing that? I’ve worked and paid PRSI for 30 years, and will do for another 5 years at least before retirement. If we move abroad I will have rental income from our home in Ireland - I think PRSI is paid on that? Would that count towards entitlement to a state pension I wonder? Would need the state pension in retirement so would affect our decision to move abroad or not. Bit clueless on all this so any experience or comments welcome.

many thanks

ZX7R · 25-09-2021 4:16pm

You can still claim the contributory stat pension for the 30 years worked in Ireland it would be a smaller payment.

Depending on where you plan on working out foring that can also be counted towards your pension.

No idea about the house part.

hblock21 · 25-09-2021 6:01pm

Your years and contributions in Europe will count towards your pension.

Give them a ring.

Dempo1 · 25-09-2021 6:16pm

https://www.boards.ie/discussion/2058210399/contributory-state-pension

PRSI is in no way linked to rental income from a property , its a pay related social insurance.

You will however be liable for tax on rental income. How this works re your home I'm unsure .

I agree with above comments on pension questions

https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx

paul71 · 25-09-2021 7:00pm

If you work abroad but still within the EU your contributions there count towards your contributions here. If you go to work outside the EU you may choose to make voluntary PRSI contributions here.

SCOOP 64 · 25-09-2021 7:06pm

Even though the UK is out of the EU the above rule still applies.

hawthorne · 25-09-2021 11:06pm

https://www.boards.ie/discussion/comment/117938721#Comment_117938721

Yes and no. Contributions made in another EU country won't pay you a single cent more for your Irish contributory pension. The foreign contributions only pay for a part of the foreign pension- and that might be either a higher or lower rate than the Irish rate. It all depends on the foreign pension regulator. This foreign part pension will be added to your Irish contributory pension. It will also be governed by the foreign regulator- means it can either go up or down in value every year. All depending on the development in that foreign EU country. Any increase in your Irish contributory pension done by the government will also only be a part increase- depending on the number of your Irish contributions.

hawthorne · 26-09-2021 2:44am

https://www.boards.ie/discussion/comment/117939023#Comment_117939023

See above!

TheBeach · 26-09-2021 5:23am

https://www.boards.ie/discussion/comment/117938803#Comment_117938803

That is not true.

If you go to another country, and don't work there, and your income from your rental property exceeds €5k per annum you will pay prsi. In return for this prsi you will get 52 class S contributions per year. These contributions count towards state pension.

Dempo1 · 26-09-2021 6:01am

https://www.boards.ie/discussion/comment/117940340#Comment_117940340

Apologies, I understood that Income from Rent is classed as a commercial income for taxation purposes, So I stand corrected.

It would seem to me the OP's simplest solution is to pay voluntary PRSI contributions for the time they are away if they qualify at a time of choosing they can ascertain if any tax paid abroad can be used towards State pension contributions

hawthorne · 26-09-2021 8:01am

https://www.boards.ie/discussion/comment/117940340#Comment_117940340

Are you sure about this? Your man will be a non resident if he goes abroad- and that would mean he has no liability to pay PRSI on the rent- and therefore makes no pension contribution. See example of the brother in Singapore in following link:

Comerford Foley | You Ask, We Answer! - “Do I pay PRSI on my rental profit as a non-resident landlord”

As usual, the devil is in the detail!