With the recent announcement by the Department of Social Protection on the state pension, curiosity has been doing rounds for the people about Irish State Pension Increase 2024. This year brings positive changes to the State Pension system, offering both increased payouts and greater flexibility for claiming benefits. As individuals plan for retirement, understanding the updated State Pension amounts becomes crucial. This article will explore the anticipated increase in the Irish State Pension for 2024, shedding light on the current pension rates and offering insights into potential methods to boost pension benefits.
Irish State Pension Increase 2024
The Irish State Pension is a government-provided financial support system designed to assist individuals in Ireland during their retirement years. It is funded through social insurance contributions made by workers and employers throughout their working periods. To qualify for the State Pension, individuals must have enough social insurance contributions, typically calculated through employment. The amount of pension received also depends on the individual’s contribution history.
Types of Irish State Pension in 2024
There are two main types of Irish State Pension
- State Pension (Contributory):
- Primary State Pension for those who have contributed to the pay-related social insurance system (PRSI) during their working life.
- Person’s age must be over 66 to qualify for this benefit.
- The pension amount which he would receive after retirement depends upon the average annual PRSI contributions. Higher contributions lead to higher pensions.
- It is not means-tested, which means one can receive it regardless of other income or savings.
- As of February 2024, one can now delay claiming their pension until age 70, thereby increasing monthly payout if he still has continued making PRSI contributions.
- State Pension (Non-Contributory):
- State pension system for those who don’t qualify for the Contributory Pension due to insufficient PRSI contributions.
- Person’s age must be over 66 to qualify for this benefit.
- The pension amount which he would receive after retirement depends upon the income and savings.
- Since it will consider income and savings, so it will be means tested, and being legally resident in Ireland.
- It is usually taxable, but if it’s the only source income, then it won’t be taxable.
Key Details of Ireland Pension Increase 2024
| Name | Irish State 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 | May 2024 |
| Website | https://www.gov.ie/en/ |
Some Important Changes in Irish State Pension
Some key changes were seen in Irish State Pension Increase 2024
- Increased maximum payment: In 2023, the maximum rate for the State Pension (Contributory) was €268.00 per week. From January 1st, 2024, this amount got increased by 3.47% to €277.30, gaining a rise of €9.30 per week. The State Pension (Non-Contributory) increased by 11.7%.
- Increased Flexibility: Individuals aged 66 to 70 can now choose to withdraw their pension using flexible options. This flexibility allows them to continue working, thereby improving their contribution record for future pension payments.
- Fairer Calculation Method: Total Contributions Approach (TCA), which involves calculating the entire contributions and improves process transparency, will totally replace the older calculation approach, Yearly Average approach (YAM), which included calculating average yearly contributions over the working life.
Who is Eligible For Irish State Pension Increase 2024 ?
- Age: Person must be 66 or above and have reached retirement age on or after January 1st, 2024.
- PRSI Contributions: Person should have started contributing in PRSI (Pay-Related Social Insurance) before turning 56 years of age.
- 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.
- 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. If a person has worked or lived abroad (e.g., in the UK), then they might still qualify based on contributions paid in other countries.
- For non-contributory state pension, the eligibility criteria remain same, but the person should be a legal citizen of Ireland and must pass the means test income and savings.
How to increase the amount of Irish State Pension?
It depends upon two factors:
- Type of Pension:
- If a person claims contributory state pension, then he will receive €277.30, gaining a €9.30 weekly increase after reaching retirement age on or after 1st January 2024.
- If a person claims non-contributory state pension, then he will receive the following payments as per age:
-
- 66-80 – €266
- 80+ – €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 he will be entitled to at least receive €277.30 per week.
- However, by deferring the claim till 67-70 years, he can access higher weekly state pension 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
Through these ways, a person can get a chance to increase their state pension. For More Updates about the Irish State Pension Increase 2024, Be regularly updated with the official sources & Our Website Home Page.
Julie Kanary is an accomplished author and financial analyst with a keen interest in social security, tax, and finance-related topics. With a wealth of experience in the field, Julie has established herself as a reputable voice in the domain of economic policy and financial literacy.Drawing upon her extensive background in economics and finance, Liam contributes regularly & offering insightful perspectives and analysis on a wide range of topics.