State pensions – how they work and what’s available

There are two State Pension Systems, the Social Insurance System and the Social Assistance System, so you should normally qualify under one of these systems. Both systems provide a pension in retirement, or a pension to next of kin in event of premature death or a pension in the event of long term disability.

To qualify for the Social Insurance System pension  you must satisfy the PRSI conditions and have made at least 260 PRSI contributions during your working life.

To qualify for a  Social Assistance pension you will have to satisfy a “means test”.

The Social Insurance Pensions provided are;

The State Pension (Transition): you must be  aged 65 or over, retired from full time work, satisfy the PRSI conditions. The personal rate is €230.30 per week, a dependent adult (over 66) rate is €206.30. so the maximum claimable for a retired couple is €436.60. At 66 the claimant is moved onto the State Pension (Contributory), this pension will be abolished in 2014, claimants will have to wait until at least 66 to claim the State Pension (Contributory). This pension is not available to the Self-employed.

The State Pension (Contributory): currently payable at 66, the age limit has increased for people born in 1955-60 the pension age is now 67 and anyone born 1961 onwards then it is now 68. The personal rate is €230.30 per week, a dependent adult (over 66) rate is €206.30. so maximum claimable for a retired couple is €436.60. There is NO requirement for you to retire in order to qualify for this pension but you must satisfy the PRSI conditions.

The Invalidity Pension: to qualify you must have been unable to work for 12 months and unlikely to return to work for a further 12 months, or are permanently incapable of work or are over 60 and have a serious incapacity / illness. The personal rate is €193.50 per week, a dependent adult rate is €138.10 per week and dependent children at €29.80 per week. This pension can be claimed as long as the person is permanently incapable of work, however it will cease at 66 and the person will be moved to the State Pension (Contributory).

The State Widows/Widowers pension (Contributor) or The Surviving Civil Partner’s Pension (Contributory):
To claim you must be widowed or the surviving partner of a registered civil partnership, not be cohabiting with anyone else and satisfy the PRSI conditions. the PRSI conditions can be satisfied by either partner (deceased or living). The rate is €193.50 per week (under 66 years), €29.80 for dependent children. This pension stops if the person remarries or enter a new civil partnership or cohabits with someone else.

The Social Assistance Pensions provided are;

The State Pension (Non-Contributory): you must be aged 66 or over, satisfy a “Means Test”, live in the state and not qualify for a state Pension (Contributory). the age limit has increased for people born in 1955-60 the pension age is now 67 and anyone born 1961 onwards then it is 68. The personal rate is €219.00 per week, a dependent adult (over 66) rate is €144.70. so maximum claimable for a retired couple is €363.70.

This amount can be reduced based on the means test, you are allowed €30 per week before any deductions are made and these will be based on any cash income, savings, investments, property, maintenance payments or any income. In relation to savings, a single person can have €41,000 and a married couple €82,000 in saving & investments and still qualify for the maximum rate pension.

The State Widows/Widowers pension (Contributor) or The Surviving Civil Partner’s Pension (Non-Contributory): To qualify you must satisfy a “Means Test”, be widowed or the surviving partner of a registered civil partnership, not be cohabiting with anyone else, living in the state and have NO dependent children. If you have dependent children you must claim the One Parent Family Payment instead (also means tested).  The rate is €188.00 per week (under 65 years), This pension stops if the person remarries or enter a new civil partnership or co-habits with someone else.

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