Irish workers have been warned of a simple mistake they make in the pension application process.
Speaking ahead of Retirement Awareness Week 2021 (PAW21), former pensions ombudsperson Paul Kenny said a common mistake in Ireland is that people think it is enough to ask for the state pension when you reach the retirement stage, however, you don’t.
Mr Kenny confirmed that you actually need to apply at least six months before you collect it, and said a better way to approach it is to have everything in place for retirement no later than quarantine.
Mr Kenny said: “People think they can just apply for their state pension when they are eligible, but they have to get all the information first.
“Ideally, you should apply at least six months after this and before that you should apply for your welfare record, which can take some time.”
While some people will need to take the time to fill in the “gaps” in their welfare records, others may find they are entitled to more money.
He added: “People often find loopholes that they cannot explain in their welfare record that might take a long time to resolve. Others who thought they were not entitled to a pension find out. often they are. “
Since there can sometimes be a gap between retirement and state pension entitlement, he also said it was recommended to consider a job to “bridge the gap”.
“People’s situation can often be quite complicated and there can be a data gap – even a missing contribution can seriously affect your final payment – so you need to allow enough time to sort it out.
“Many will not understand how important it is to have credits on your file if there is a gap between the retirement age and the retirement age.
“By working a single week, you get into class A and all the credits you get after that are in class A – not many people know that.”
According to the authorities, to be entitled to the state pension, you must meet the following two conditions:
- you must have started insurable employment before you are 56 years old
- you must have paid at least 520 full rate social insurance contributions (PRSI) since entering insurable employment. However, if you turned 66 before April 6, 2012, you need 260 contributions paid at full rate
Ideally, Kenny said the time to start planning for retirement is during your first week on the job, but added, “I’d like people to look at the opportunities at least mid-life so that ‘they can be prepared. ”
Mr. Kenny will advise you on what to do if you are approaching retirement in a year, five and ten years at PAW21, a weeklong event that runs September 20-24.
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