Q.  I will be 65 this year and I plan to retire from work. What do I need to know about pensions and other benefits in retirement?

24.01.10

There are various types of pension available. If you made enough PRSI contributions during your working life and you retire at 65 you are entitled to the State Pension (Transition). At 66, you are entitled to the State Pension (Contributory). If you have not made enough PRSI contributions, you can apply for a State Pension (Non-Contributory) at 66, which is means-tested. You should apply for State pensions at least three months in advance. You may have contributed to an occupational pension scheme during your working life, or you may have a personal pension arrangement. You need to deal directly with the pension provider to find out exactly what benefits your pension gives you.

If you move from employment to retirement in the course of the year, you should get a PAYE Balancing Statement (P21) from your local tax office at year’s end. This will trigger a refund of any overpayment of tax you might have made. All your income remains taxable (your State pension plus any occupational pension). However the tax exemption limits are much higher for people aged 65 or over and there are some extra tax credits.

Everyone over 66 is exempt from PRSI and everyone over 70 is exempt from the health levy. At 66 you are also eligible for a Free Travel Pass and you may also be eligible for the Household Benefits package, depending upon your domestic situation. Income limits for medical cards are much higher for people over 70. Medical card holders do not pay the income levy.

The Citizens Information Board publishes Entitlements for over sixties which covers all 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

Return to > Citizens Information