I will be retiring from work in 2015 when I reach 65. What do I need to know about pensions and other benefits in retirement?
Answer
When you retire at age 65 you can claim Jobseeker’s Benefit, which is based on your Pay Related Social Insurance (PRSI) contributions. If you do not qualify for Jobseeker’s Benefit you can claim Jobseeker’s Allowance, which is a means-tested payment.
At age 66, you may be entitled to the State Pension (Contributory). If you do not have enough PRSI contributions, you can apply for a State Pension (Non-Contributory), which is means-tested. You should apply for State pensions at least three months in advance.
You may have contributed to an occupational pension scheme during your working life or you may have a personal pension arrangement. You need to contact the pension provider to find out exactly what benefits your pension gives you.
If you move from employment to retirement in the course of the year, you should get a PAYE Balancing Statement (P21) from your local tax office at the end of the year. This will trigger a refund of any overpayment of tax you might have made.
Your Jobseeker’s Benefit or State pension and any occupational pension are taxable. However, the tax exemption limits are much higher for people aged 65 or over and there are some extra tax credits.
At age 66 you will be exempt from paying PRSI. At age 70 you will pay a reduced Universal Social Charge if your annual income is €60,000 or less.
At age 66 you will also be eligible for a
For medical cards and GP Visit Cards, which are means tested, the income limits are higher for people aged 70 and over.
Further information is available from the Citizens Information Centre below.
Know Your Rights has been compiled by Dungloe Citizens Information Service which provides a free and confidential service to the public. Tel: 0761075431 Address: Dungloe Public Services Centre,
Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service, 0761 07 4000.