From the 1st January 2024, anyone turning age 66 thereafter will have the choice to delay drawing down on the State Pension (Contributory) between age 66 and 70. There are a number of reasons why someone might choose to postpone their State Pension, as referenced in our previous blog. For details – Click Here
Up until January this year, if you are in receipt of an income and you are aged 66 or above, you do not pay PRSI on your earnings, this was automatic. If you are aged 66 before 1st January, there are no changes, the new rules will not apply to you.
For everyone else turning 66 in the current year and beyond, you may still be liable to pay PRSI on your earnings if you continue to work, right up to age 70. Once however you begin to draw on your State Pension, you will no longer be liable to PRSI if you continue to work.
To avoid unnecessarily paying PRSI, it will be very important for you to inform your employer, or accountant if you are self-employed. The onus will be on you to provide proof to ensure PRSI is no longer applied. Confirmation of State Pension is the only requirement.
This equally applies if you are between the age of 66 and 70 and in receipt of a Pension ARF or Annuity income. Your pension provider will begin to apply PRSI to your drawings going forward, unless and until you show proof of State Pension. Remember, you will need to take action to avoid the tax.
For a more detailed report, information is available on the Government website – Click Here