Publication
Changes to the State Pension (Contributory) in Ireland
From Department of Social Protection
Published on
Last updated on
From Department of Social Protection
Published on
Last updated on
Changes to the State Pension (Contributory) were introduced from 1 January 2024.
This is because today in Ireland, people are living longer, are healthier and lead more active lives resulting in more people availing of state pensions for longer.
These changes include:
From January 2024 access to the State Pension (Contributory) improved for long-term carers.
If you have spent more than 20 years providing full-time care to an incapacitated person, you may be entitled to enhanced state pension provision.
You will get the equivalent of paid contributions (long-term carer’s contributions) for periods of over 20 years spent caring to cover gaps in your contribution record needed to calculate the State Pension (Contributory).
You will be able to apply for these contributions on MyWelfare.ie.
State Pension (Contributory) became more flexible. for people born on or after 1 January 1958.
You can choose a date between age 66 and 70 to access any State Pension (Contributory) entitlement you may have.
This gives you the opportunity to continue to work which may improve your contribution record for when you decide to drawdown your State Pension (Contributory).
You can continue to work full-time after your pension is drawn down.
If you claim your pension beyond the age of 66, you may be entitled to an actuarially increased rate of payment. If you decide to drawdown State Pension (Contributory) after you turn 66, you will be able to continue to make social insurance (PRSI contributions to increase your personal rate of payment or meet the qualifying condition of 520 (10 years) contributions for State Pension (Contributory).
However, you will not be able to increase your rate of payment beyond the maximum rate of State Pension (Contributory) once you achieve 2080 social insurance contributions (40 years). This means that it will be essential to know how many contributions you have before you are going to drawdown your pension.
From January 2025 there will be a 10-year phased removal of the Yearly Average Method, which means that all pensions will be calculated using only the Total Contributions Approach (TCA) by 2034.
During the 10-year transition period, pensions will be calculated using two methods:
Methold 1: The Total Contribution Approach (TCA) will be used to determine a rate of payment. If you will receive the maximum State Pension contributory rate using this calculation, no further calculation is necessary.
If you would receive less than the maximum State Pension (Contributory) rate using the TCA, the Department will consider a rate using Method 2.
Method 2: A rate of payment using a Yearly Average calculation will be determined. A proportion of this Yearly Average rate will then be combined with a proportion of a TCA rate to determine the rate of State Pension Contributory payable to you.
Having compared the outcome of Method 1 and Method 2, the most favourable rate will be awarded to you.
To help you estimate the rate of State Pension (Contributory) you may receive, you can request a copy of your Contribution Statement.