Q.  I will be 65 in 2013 and I will qualify for a contributory state pension. What do I need to know about other benefits in retirement?

03.12.12

If you move from employment to retirement during the year, you should get a PAYE Balancing Statement (P21) from your tax office at the end of the year. This will trigger a refund of any overpayment of tax you might have made. All your income is taxable (your State pension plus any occupational pension). However people aged 65 or over pay less tax since they have some extra tax credits and special tax exemption limits (below which no tax is payable).

Everyone over 66 is exempt from paying PRSI and people over 70 pay a lower rate of Universal Social Charge. At 66 you are also eligible for a Free Travel Pass and may be eligible for the Household Benefits Package, which includes the free TV licence, electricity/gas allowance and telephone allowance. Income limits for medical cards are much higher for people over 70. The Citizens Information Board publishes a book Entitlements for over sixties which covers your rights, entitlements and the services available as you approach retirement age. You can request a copy from your local Citizens Information Centre.

Citizens Information: Buncrana 074 9363496; Carndonagh 074 9373741

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