The State Pension explained.
The State Pension has two versions, the Contributory State Pension and the Non-Contributory State Pension.
Contributory State Pension
The Contributory State Pension is currently paid to people from the age of 66, who have enough Irish social insurance contributions.
The age at which people qualify for the State Pension changed to 66 in 2014, this is due to change again in 2021 and 2028. To see when you could qualify for the State Pension look at the table below:
|Year of Birth
||State Pension Age
|Up to and including 1954
|1960 and later
The Contributory State Pension is not means-tested, you can have other incomes and still get the State Pension. Although the Contributory State Pension is taxable, it’s unlikely to be taxed if it is the only source of income you have in retirement, as anyone over the age of 65 only pays income tax on earnings above €18,000. Currently the full State Pension is €248.30 per week or €12,911.60 per year.
To qualify for the Contributory State Pension you must meet the two following conditions:
• Started paying social insurance before 56
• Have paid at least 520 full rate social insurance contributions
To qualify for a full State Pension you must then also have a yearly average of at least 48 paid and/or credited full rate contributions from the year you started insurable employment, until you reach 66 years of age.
If you don’t have the above, then you may qualify for a reduced rate pension. In order to qualify for this you must have a yearly average of at least 10 paid and/or credited full rate contributions from the year you started insurable employment to the end of the contribution year before you reach the age of 66.
The following table shows the rate of pension payable based on the individual’s number of contributions: