The Irish government has made a big change to the pension system. Now, people can work until they’re 70 to get the biggest possible pension when they retire. These changes started from the 1st of January, 2024. The main change is that people who used to claim their pension at 66 can now wait until they’re 70.
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Irish State Pension Increase News
Before, people could start getting their pension at 66. But now, they have more choices and can get more money when they retire. This is great news for people who have just started working. They can work longer and get the highest possible state payment.
Different Kinds of Pensions in Ireland
There are two kinds of state pensions in Ireland: Contributory and Non-contributory.
- Contributory: This is for people who have paid into the Irish system at any point while they were working. They can start getting this pension anytime until they’re 70.
- Non-contributory: This is for people who don’t qualify for the state pension because they haven’t paid enough into it. In this case, they can get a basic weekly payment, depending on their income. If someone is over 66 and doesn’t qualify for the Irish State Pension, the government has other plans for them. They might still get some money every week.
This pension is taxed, but you might not have to pay tax on it if you don’t have any other income.
How Much is the State Pension?
The table below shows how much money people of different ages can get from the state pension.
Age |
Pension Amount |
|---|---|
67 Years |
€290.30 |
68 Years |
€304.80 |
69 Years |
€320.30 |
70 Years |
€337.20 |
This information is up-to-date as of January 2024. People of different ages will get different amounts depending on when they qualify. The age limit has been raised so people can pay more into social insurance and get a bigger pension in 4 years.
Who Can Get the Irish State Pension?
There are certain rules about who can get the state pension. Here are the rules for the non-contributory pension:
- You must be an Irish citizen who is 66 or older.
- You must pass a means test.
- If you’re not Irish, you must be under HRC.
Here are the rules for the contributory state pension:
- You can start getting payments when you’re 66.
- You must have paid enough into PRSI.
- You must have started paying into PRSI before you turned 56.
So, you can choose between contributory or non-contributory pension payments, depending on what you qualify for.
How to Get a Bigger Pension?
If you want a bigger pension, you can follow the guide below. You can pay more into PRSI to get a bigger pension when you retire. After the recent changes, you can now wait until you’re 70 to start getting your pension, which means you can pay more into social insurance.
You can also buy extra years to pay more into the system. You can get a non-contributory pension if you don’t have enough income to pay into PRSI. There are many financial programs in Ireland for retired people, so if you’re not happy with the non-contributory pension, you can apply for other programs that will give you financial help when you retire.
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Mahesh Sen, a seasoned student advisor, writes informative articles on educational topics. Mahesh gives valuable insights and practical advice to guide students through their academic challenges and milestones.