To answer this question, you must first find out what type of State Pension you will become entitled to when you reach pensionable age. There are two types:

  1. Contributory
  2. Non-Contributory

 

In order to qualify for the maximum State Pension (Contributory) you must have made a certain level of PRSI contributions* in the past. Should you not qualify for the maximum level of the State Pension you may still qualify for a reduced level of it. This pension is not means tested, therefore any private pension or other wealth you may have will not affect it.

 

However, any additional State Pension payable for an adult dependent will be means tested. This means test applies to the adult dependent and not to you.

 

It is a different story, on the other hand, as regards the State Pension (Non-Contributory). This pension applies to those who have not met the necessary PRSI requirements to qualify for the Contributory pension. As this benefit is subject to a means test, any private pension you may have could affect the State Pension (Non-Contributory) you receive, if any. The amount payable is scaled down according to your weekly means. The maximum rate of State Pension (Non-Contributory) is paid where your weekly income is less than €30. Any savings or investments you have will also be taken into account to calculate your means.

 

*To find out your PRSI contribution record visit www.welfare.ie and fill in the form.