The saying 'time is money' is very true, especially with regard to our working lives. But equally it can be applied to our time in retirement. If you rely on the Irish State pension, the value of your pension will depend on a few factors, such as your age and your social insurance contributions.
After working hard for most of your life, when you reach retirement, wouldn't it be nice to have the money you need to maintain your standard of living in retirement? From January 2023, the State pension in Ireland for a person aged 66 or over is €265.30 per week. Could you survive on the State pension alone, and what will your finances look like in retirement?
What is the State pension?
The State pension (contributory) is paid to people from the age of 66 who have enough Irish social insurance contributions. It is not means-tested and you can have other incomes and still get the State pension. While the contributory State pension is taxable, it's unlikely to be taxed if it is the only source of income.
Is everyone entitled to the State pension?
To qualify for the State pension you must have started paying social insurance before reaching 56 years of age. You must have paid at least 520 full rate social insurance contributions and 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 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.
In order to help provide for your retirement, starting a pension is one of the smartest financial decisions you can make. When choosing a pension, having all the information you need is key. Sound advice is invaluable, so it's a good idea to seek advice from a financial advisor. An independent financial advisor can guide you through the process and help you select the right pension plan for your circumstances. You can find a local financial advisor near you with the Zurich Advisor Finder. Alternatively, our Financial Planning Team can provide you with more information about Zurich's pension plans and options.
The information contained herein is based on Zurich Life's understanding of current Revenue practice as at January 2023 and may change in the future.