As we stepped into 2024, Ireland witnessed a gradual shift in its pension landscape as the government introduced updates to pension rates, making potential changes in the financial well-being of its retirees, providing more flexibility to prepare their retirement plans. From deferred payments to enhanced rates, the new pension landscape promises increased financial security for those approaching retirement age. This article would serve as a guide to know more about the increased pension amount, crucial payment dates, eligibility criteria for beneficiaries and more.
Ireland Pension Increase 2024
The Irish pension system is designed as a pay-as-you-go program, which comprises of a combination of state and private pension provisions designed to ensure financial security for retirees. The state pension provides a basic “Contributory” pension to those with sufficient contributions, starting at age 66 (optionally delayed to 70)and a means-tested “Non-Contributory” option.
Additionally, one can increase their income through private pension savings through “Occupational” pension schemes to boost state provisions and tax-advantaged Personal Retirement Savings Accounts (PRSAs)for flexible investment growth. One can even choose guaranteed income through “RACs” or life insurance-based “Personal Pension Plans”.
Some key Points For Ireland Pension Increase
- Increased maximum payment: Previously, the maximum rate for the State Pension (Contributory) stood at €268.00 per week. From January 1st, 2024, this amount increased by 3.47% to €277.30, representing a rise of €9.30 per week.
- The State Pension (Non-Contributory) increased by 11.7%.
- Option to defer claiming: While the state pension age remained 66, individuals now have the flexibility to defer claiming their pension until age 70. This allows for continued PRSI contributions, leading to higher weekly payments upon retirement.
Overview of Ireland Pension Increase 2024
| Name | Ireland Pension Increase 2024 |
| Country of Origin | Republic of Ireland |
| Regulating body / Department | Department of Social Protection |
| Year | 2024 |
| Category | Government Aid Finance |
| Objective | Financially support old age, senior people, and retirees. |
| Applicable persons | Old age, senior people, and retirees of Scotland. |
| Age Limit | 65+ years |
| Percentage increase in 2024 | State Pension (Contributory) – 3.47%
State Pension (Non-Contributory) – 11.7% |
| Amount | State Pension (Contributory) – €277.30
State Pension (Non-Contributory) · 80+ age – €276 · 66 – 80 age – €266 |
| Payment Duration | Every week |
| New Payment Starting Month | January 2024 |
| Website | https://www.gov.ie/en/ |
Who is Eligible to get benefit from Pension Increase 2024
Citizens Looking For the Ireland Pension Increase in 2024 & wants to get benefit from it must fulfill the below mention eligibility as mentioned.
Age: Person must be 66 or above and have reached retirement age on or after January 1st, 2024.The State Pension (Contributory) becomes accessible at this age.
PRSI Contributions: Person should have started contributing in PRSI (Pay-Related Social Insurance) before turning 56 years of age.
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- Currently, this requires at least 520 contributions.
- At least 260 full rate paid contributions can also work if a person turned 66 before April 6, 2012.
Qualifying Contributions: A person would require yearly average of at least 10 qualifying contributions to receive the minimum pension. For the maximum pension, a yearly average of at least 48 qualifying contributions is necessary.
Citizenship/Residency: Person must be a naturalized Irish citizen or a legal resident in Ireland for at least 15 years during the 20 years preceding the claim.
Expected Increased amount for Ireland Pension Increase 2024
The increased amount for the Ireland Pension Increase in 2024 depends upon two factors:
Type of Pension:
- State Pension (Contributory): For those reaching retirement age on or after January 1st, 2024, the maximum weekly rate increased from €268.00 to €277.30, representing a €9.30 weekly increase or increase by 3.47%.
- State Pension (Non-Contributory): This means-tested pension saw a percentage increase:
- 11.7% increase for the basic rate for those aged 66 and under 80 to the final amount as €266.
- 11.4% increase for those aged 80 and over to the final amount as €276.
Age at which pension is being claimed:
This applies for State Pension (Contributory) only.
- If a person claims the pension at age 66, then they will receive the base amount of €277.30 per week.
- However, by deferring the claim till 67-70 years, one can access higher weekly payments due to additional PRSI contributions:
- €290.30 at age 67
- €304.80 at age 68
- €320.30 at age 69
- €337.20 at age 70
Amounts may vary due to longer working periods or contributions above the full rate might receive slightly higher pension amounts.
Payment Dates for Ireland Pension Amount
Basically, the payment dates will almost remain same, unless the pay day is a holiday.
- Type of pension: Payments follow a four-week cycle based on the last digit of social security number:
- Last digit 0 & 1: Paid on the 3rd Thursday of the month.
- Last digit 2 & 3: Paid on the 4th Thursday of the month.
- Last digit 4 & 5: Paid on the 1st Friday of the month.
- Last digit 6 & 7: Paid on the 2nd Friday of the month.
- Last digit 8 & 9: Paid on the 3rd Friday of the month.
- Holiday adjustments: If your designated payment date falls on a bank holiday, payment will be received on the working day before the holiday.
How to claim or check status For Ireland Pension Increase 2024
The existing recipients won’t need to claim as the increased amount will be automatically reflected in payments starting from January 2024.
Newbies can claim and all can check the status through the following:
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- Online: Through My Welfare service on the Department of Social Protection website: https://www.mywelfare.ie/
- Phone: Call at 1850 00 1960.
- In person: By visiting the local Social Welfare Office, you can claim and check the status.
So all the Eligible & qualified citizens can have benefit from the Ireland Pension Increase 2024. The Government Implement timely changes , which must be known by its you . The increased amount paid directly by the Government in bank accounts on scheduled pension payment dates.
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