Q.  I turn 65 next year and will qualify for a State Pension (Transition). However I see that the conditions state that you cannot be in insurable employment. I will be retired from work but I get a small income from rent from an investment property I own and I pay Class S PRSI contributions on this income. Does this mean that I won’t qualify for the Transition Pension?

13.11.11

It is possible to qualify for a State Pension (Transition) even if you are paying self-employed PRSI. The State Pension (Transition) lasts for one year and to qualify you must: Have reached your 65th birthday and be under 66 and retired from work. You must also have enough social insurance contributions.

Being retired means that you must not be in insurable employment or self-employment. If you have earnings, they must be less than €38 a week from employment or €5,000 a year from self-employment. If you have an income from savings or investments, you could be liable for self-employed PRSI but you can still get a State Pension (Transition) if you are not actually engaged in self-employment.

So in your case since you are not actually engaged in self-employment you should qualify for the pension. The ‘being retired’ condition ends when you reach 66 and transfer to the State Pension (Contributory) and you can then work without any effect on your pension.

Citizens Information: Buncrana 074 9363496; Carndonagh 074 9373741

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