People who are reaching pension age this year have been advised to think very carefully about deferring their pension, in particular those who have an entitlement to a full contributory state pension.
Killarney councillor, Marie Moloney, said if people defer the pension for a year, until they reach the age of 67, they will have missed out on €14,419.60, based on today’s figures.
“As a result of deferring until you are 67, your pension will be at the increased rate of €13.00 per week and it would take you 20 years at the increased rate to make up what you lost out on,” she said.
“If you defer your pension until you are 70 years of age you will have missed out on €57,678, again based on today’s figures,” she said.
Cllr Moloney said as a result, the pension will be increased by €59.90 per week and it would take just over 18 years to make up what they lost out on.
“Where it would be beneficial to continue working would be if you did not meet the first qualifying condition of having 520 contributions paid during your lifetime. Continuing to pay PRSI after 66 may bring you into payment of the minimum pension,” she said.
She advised people: “Please take advice before you make any decisions on this matter as people may not be aware of the consequences and of the fact if you take your pension at 66 then you can continue to work after pension age and not pay PRSI, depending on your employer”.
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