14.5 C
Ireland
Sunday, October 24, 2021

People aged over 66 face having to pay PRSI under controversial proposal

For the first time, people over the age of 66 years old will have to pay PRSI under controversial new proposals.

The Pensions Commission wants to remove a special exemption that allows people over the age of 66 to avoid paying Pay Related Social Insurances on their social income.

-AD-

With future governments faced with the challenge of maintaining funding for the state pension, the commission believes that older people should contribute as an act of solidarity.

Weekly incomes over €100 will face a charge rate of 4%, however, this will not apply to private or public sector pensions and income salary for an individual over 66 who is still working.

The charge will apply to anyone over the age of 66 who is getting income from savings, dividends, investment returns, or rental income.

-AD-

The Pensions Commission has recommended significant changes which includes linking rises to inflation and offering greater flexibility in relation to when people can start accessing payments.

One option is to allow those who began working earlier on in their lives to retire at 65, one year earlier than the current retirement age.

It also recommends that those who want to keep working until 70 should be allowed to build up pension credits.

It has also been revealed by the Irish Independent that the state pension age will not reach 67 until the year 2031.

Minister for Social Protection Heather Humphreys stated, “The Commission unambiguously established that the current state pension system is not sustainable into the future and that change is needed.”

However, this move to impose PRSI on pensioners is likely to be seen as an unjust tax on Ireland’s elderly population.

IMAGE (left) – “File:Dáil Éireann – Election of Taoiseach – 27 June 2020 (50050917608).jpg” by Houses of the Oireachtas from Ireland is licensed under CC BY 2.0

POPULAR

Winter blackouts possible for family homes this year, energy sector warns

Ministers have been warned by the energy sector that winter blackouts for family homes are possible this year.

Gardaí are renewing an appeal to help identify human remains found on Wexford beach in 1995

Gardaí are renewing an appeal to help identify human remains found on Wexford beach in December 1995. On December...

Sinn Féin is the most popular political party in Ireland, according to latest poll

Sinn Féin is currently the most popular political party in Ireland, according to the lates poll carried out by Red C and...

Stop ‘inhumane’ practice of sending migrants back to Libya – Pope

Pope Francis has asked for the practice of sending migrants back to Libya to end as migrants are returned to countries where...
Ireland
scattered clouds
14.5 ° C
15.4 °
14.3 °
77 %
6.2kmh
49 %
Sun
14 °
Mon
11 °
Tue
16 °
Wed
15 °
Thu
13 °