Beware of the pension trap set by the State

A LOT of humorous questions are asked in that well known Beatles’ song ‘When I’m 64.’

But I wish to raise some serious questions about when I’m 65. Approximately 80,000 people become eligible each year to receive the retirement pension at 65. What many may not realise is that the qualifying conditions are very strict.

To qualify, one can work part-time, paying PRSI at Class J, and earn less than €38 per week or, for the self-employed , less than €3,174 per year.

Basically this means giving up one’s job. The sick joke is that at 66, if you qualify for a contributory pension, you can earn as much as you like, and collect your pension as well.

After contributing throughout a working life to the Government pension scheme, it is toughest for married couples dependent on one income to give up a combined pension of €255.40 per week if one partner earns more than €38 per week.

Correspondence from Minister Mary Coughlan’s office says the Government it anxious to encourage older people to remain active in the labour force for as long as possible.

Can she explain how, on reaching 65 and obliged to cease working, one can get employment again at 66?

Thousands of people in this age group have huge expenses with third-level education, etc. Further, is she aware of the huge losses in pension funds over the past three years?

I would remind the Minister, and the 80,000 now aged 65, of the programme for government agreed between FF and the PDs: “We will remove the requirement whereby a person reaching the age of 65 must first retire for a period (which is a full year) before being able to work and retain a portion of their pension.

"We will at the same time examine and seek to remove other financial disincentives for people of pension age who may want to continue some form of employment.”

Elimination of the €38 rule will cost. But surely, this cost will be recouped by the Exchequer in tax and PRSI.

There seems to be no political will to get rid of these draconian rules, especially the ridiculous €38 limit which even rules out part-time work.

I am, therefore, asking 80,000 people to pester their TDs and the Minister’s office (Store Street, Dublin 1) to get this farce sorted out.

above item on programme for government implementation. Don’t expect a personal reply from Ms Coughlan as you probably will be let down.

Cyril Leahy,

Abbeylands,

Ardfert,

Co Kerry.