Should i still be paying prsi

You can learn more about USC in the Jobs and pensions section. Published: 03 June Please rate how useful this page was to you Print this page. It looks like you have JavaScript disabled. Certain parts of this website may not work without it. Please enable JavaScript for the best experience. Your choices on cookies This website uses cookies in order for our feedback functionality to work. Survey cookies Survey cookies are set by a third-party service provided by Qualtrics.

Save and close. Your choices on cookies This website uses cookies in order for our video functionality to work. It looks like the internet browser you are using is out of date. Please update your browser for the best experience. After this point, people need to apply for a non-contributory pension themselves. The whole pensions landscape is currently under review as the Government considers, on the one hand, auto-enrolment, which will pull more employees into having private pensions, and, on the other, discussions on a move to a total contributions approach TCA for the contributory State pension from But where does this leave those depending on the non-contributory pension?

However, there may be some impact — and it could be positive. Some people who actually qualify now for a contributory State pension, but are taking the non-contributory payment because they are entitled to a higher payment through this scheme, may end up doing better through a contributory pension once the system is changed. People are entitled to go for the pension type which yields them the highest weekly rate. Their assessed means exceed the statutory limit, so neither qualify for the non-contributory pension.

Please update your payment details to keep enjoying your Irish Times subscription. Fiona Reddan. Topics: living alone allowance fuel allowance increase for qualified adult means test non-contributory state pension. Home energy upgrades are now more important than ever. Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.

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Screen Name Selection. A: There are three main recommendations. The pension age should stay at 66 until The Commission recommends incremental increases of three months each year starting seven years from now. This would see the pension age reach 67 in , with further increases of three months every second year reaching 68 in It also recommends PRSI pay related social insurance payments be gradually increased for employees, employers and the self-employed.

The biggest hit would be for the self-employed. Enter email address This field is required Sign Up. A: The cost of funding state pensions is huge. The Social Insurance Fund, where your PRSI payments go to pay for all welfare payments such as pensions and unemployment benefit, will be totally consumed by the cost of paying for pensions by if action is not taken. This is due to people living longer and fewer workers for every retired person expected over the coming years.

A: The Pensions Commission has called for the removal of the exemption to pay PRSI for people aged 66 and over, a move which is set to prove highly controversial. Once people reach the state pension age of 66 they no longer have to make pay related social insurance PRSI contributions on private or public sector pensions or other income.

But the report, which was discussed at Cabinet, says those aged 66 and older should now pay the contribution. Those who would pay the PRSI would get no benefits from paying it. Currently, those still in a job over the age of 66 escape paying PRSI.