We’ll explain the new changes to the Irish State Pension for 2024. We’ll cover how much the State Pension will be increased, and what you can do to get the most out of it. If you’re worried that you might not have enough contributions to qualify for the State Pension by the time you turn 66, don’t worry—there’s some good news for you. Keep reading to find out more!
Irish State Pension Increase 2024
A remarkable change has been made to the Irish state pension system for taxpayers. Starting January 1, 2024, people can work until they are 70 to receive the highest pension payment when they retire.
Previously, you could start getting the contributory state pension at age 66. Now, with this new rule, you can choose to wait until you’re 70 to get a larger pension. This change gives more flexibility and benefits, especially for those who started working later in life. By working longer, they can qualify for a bigger pension amount when they retire.
Irish State Pension Types
A remarkable feature of Ireland’s pension system is that it offers two types of state pensions: the Contributory Pension and the Non-Contributory Pension.
Contributory: If you have paid into Ireland’s social insurance system during your working years, you can apply for a Contributory Pension. You can choose to start receiving this pension any time after you turn 66, up until you are 70.
Non-Contributory: This pension is for people who haven’t made enough contributions to qualify for the Contributory Pension. It provides a basic weekly payment that is based on your financial need. If you’re over 66 and not eligible for the Contributory Pension, you might receive this weekly amount directly into your bank account.
Although some tax might apply to this pension, if you have no other sources of income, you might not have to pay any tax at all.
How Much is State Pension
To understand the state pension better, take a look at the table below, which shows how much money people get at different ages.
| Age | State Pension Amount |
|---|---|
| 67 | €290.30 |
| 68 | €304.80 |
| 69 | €320.30 |
| 70 | €337.20 |
This information is from January 2024. People will receive different amounts depending on their age when they start their pension. As people get older, they can earn more by contributing to social insurance for a longer time, which helps increase their pension amount over four years.
Irish State Pension Eligibility Criteria
To get the state pension in Ireland, you need to meet certain eligibility requirements. Here’s a simple guide to help you understand if you qualify for either the non-contributory or contributory state pension.
Non-Contributory State Pension:
- You must be an Irish citizen who is 66 years old or older.
- You need to pass a means test to show you have a low income.
- If you are not an Irish citizen, you should be under the Habitual Residence Condition (HRC).
Contributory State Pension:
- You must be 66 years old to qualify.
- You need to have made enough PRSI (Pay-Related Social Insurance) contributions.
- You should have started paying into the PRSI before you turned 56.
With these requirements, you can decide whether you are eligible for the contributory or non-contributory pension.
How Can I Increase it?
To get a higher pension payment, follow this guide. You can make extra contributions to the PRSI (Pay Related Social Insurance) to boost your pension for retirement. With the new update, you can now start claiming your pension at age 70, allowing you to make additional contributions to social insurance.
You can also buy extra years of contributions to increase your pension amount. If you don’t have enough income to contribute to the PRSI, you might qualify for a non-contributory pension. In Ireland, there are various financial programs available for retirees, so if the non-contributory pension isn’t enough, explore other programs that offer financial help during retirement.