Incentives for persons opting to defer their pension entitlement and continue in employment or self-employment.

Persons who satisfy the eligibility conditions to claim their Retirement Pension prior to their pension age or persons who have reached their pension age, but opt to defer such claim and continue in employment or self-employment, are eligible to a percentage increase in their pension rate as follows:

• For persons entitled to a Retirement Pension at age 61 who opt to continue working till age 62 without claiming their retirement pension at age 61, a 6.5% increase in pension rate entitlement at age 62.
• For persons entitled to a Retirement Pension at age 62 who opt to continue working till age 63 without claiming their retirement pension at age 62, a 7% increase in pension rate entitlement at age 63.
• For persons entitled to a Retirement Pension at age 63 who opts to continue working till age 64 without claiming their retirement pension at age 63, a 7.5% increase in pension rate entitlement at age 64.
• For persons entitled to a Retirement Pension at age 64 who opts to continue working till age 65 without claiming their retirement pension at age 64, an 8% increase in pension rate entitlement at age 65.

Those opting to postpone their Retirement Pension award for more than one year, will have their pension percentage incease accumulated as follows:

• For persons entitled to a Retirement Pension at age 61 who opt to continue working till age 63 without claiming their retirement pension at age 61, a 13.5 % increase in pension rate entitlement at age 63.
• For persons entitled to a Retirement Pension at age 61 who opt to continue working till age 64 without claiming their retirement pension at age 61, a 21% increase in pension rate entitlement at age 64.
• For persons entitled to a Retirement Pension at age 61 who opt to continue working till age 65 without claiming their retirement pension at age 61, a 29% increase in pension rate entitlement at age 65.
• For persons entitled to a Retirement Pension at age 62 who opt to continue working till age 63 without claiming their retirement pension at age 62, a 7% increase in pension rate entitlement at age 63.
• For persons entitled to a Retirement Pension at age 62 who opt to continue working till age 64 without claiming their retirement pension at age 62, a 13.5% increase in pension rate entitlement at age 64.
• For persons entitled to a Retirement Pension at age 62 who opt to continue working till age 65 without claiming their retirement pension at age 62, a 21% increase in pension rate entitlement at age 65.
• For persons entitled to a Retirement Pension at age 63 but choose to work till age 64 without claiming their retirement pension at age 63, a 7.5% increase in pension rate entitlement at age 65.
• For persons entitled to a Retirement Pension at age 63 but choose to work till age 65 without claiming their retirement pension at age 63, a 13.5% increase in pension rate entitlement at age 65.

The pencentage pension increase is cumulative and will be paid till date of pensioner’s demise.

The percentage pension increase will be payable to all eligible persons in receipt of a Contributory Retirement Penison who satisfy the above conditions including those in receipt of the Maximum Two Thirds Pension.

The percentage increase is payable apart from other pension increases, included Cost of Living Adjustment.

The percentage increase is transferred in the case of a Widows Pension.

Further infomation:

• Statutory Pension age for a person born between 1952 and 1955 is 62 years.
• Statutory Pension age for a person born between 1956 and 1958 is 63 years.
• Statutory Pension age for a person born between 1959 and 1961 is 64 years.
• Statutory Pension age for a person after 1961 is 65 years.
• A person born between 1952 and 1961 can opt to retire at age 61, provided he/she is not in any gainful occupation and has paid 1820 contributions between age 18 and 61, that is, has paid 35 years of contributions.
• A person born between 1962 and 1968 can opt to retire at age 61, provided he/she is not in any gainful occupation and has paid 2080 contributions between age 18 and 61, that is, has paid 40 years of contributions.
• A person born after 1968 can opt to retire at age 61, provided he/she is not in any gainful occupation and has paid 2132 contributions between age 18 and 61, that is, has paid 41 years of contributions.
• The Incentives for persons keeping their employment beyond their Pension age is applicable as from the 1st January 2016. Therefore, a person who was eligible for a Contributory Retirement Pension at least at age 61 but opts to claim his pension at least with a one year deferral will benefit from the mentioned pension percentage increases. This increase will accumulate yearly as the pension award date is postponed. Agreement with employer is to be reached if a person opts to retire after own statutory pension age.

Hereunder are three examples that will help in explaining this new incentive (assuming that the cost of living allowance will be €1.75 weekly)

1. A person entitled to a contributory pension of €8,000 per annum (€153.84 per week) at age 61.
   • If pension is claimed at age 62 instead of age 61, pension would increase to €8,520 (€163.85 weekly).
   • If pension is claimed at age 63 instead of age 61, pension would increase to €9,020 (€174.62 weekly).
   • If pension is claimed at age 64 instead of age 61, pension would increase to €9,680 (€186.15 weekly).
   • If pension is claimed at age 65 instead of age 61, pension would increase to €10,320 (€198.46 weekly).

   Therefore, if a person who is entitled to a contributory pension of €153.84 per week at age 61, continues employment till age 65 and thus claims his/her pension at age 65, would have his pension entitlement increase to €198.45 per week, a net increase of nearly €44.61 weekly.

2. A person entitled to a contributory pension of €9,500 per annum (€182.69 per week) at age 62.
   • If pension is claimed at age 63 instead of age 62, pension would increase to €10,117.50 (€194.57 weekly).
   • If pension is claimed at age 64 instead of age 62, pension would increase to €10,782.50 (€207.36 weekly).
   • If pension is claimed at age 65 instead of age 62, pension would increase to €11,495 (€221.06 weekly).

   Therefore, if a person who is entitled to a contributory pension of €182.69 per week at age 62, continues employment till age 65 and thus claims his/her pension at age 65, would have his pension entitlement increase to €221.06 per week, a net increase of nearly €38.36 weekly.

3. A person entitled to a contributory pension of €11,500 per annum (€221.15 per week) at age 63.
   • If pension is claimed at age 64 instead of age 63, pension would increase to €12,2886.36 (€236.31 weekly).
   • If pension is claimed at age 65 instead of age 63, pension would increase to €13,052.50 (€251.01 weekly).

   Therefore, if a person who is entitled to a contributory pension of €221.15 per week at age 63 and continues employment till age 65 and thus claims his/her pension at age 65, he would have his pension entitlement increased to €251.01 per week, a net increase of nearly €29.86 weekly.

4. A person entitled for a Retirement Contributory pension of €12,000 per annum (€230.77 per week) at age 64.
   • If a pension is claimed at age 65 instead of at age 64, pension would increase to €12780 (€245.77 weekly) at age 65.

   Therefore,if a person is entitled to a contributory pension of €230.77 per week at age 64 and continues employment till age 65, he would have his pension entitlement increased to €249.23 per week, a net increase of €18.46 weekly (8%).