The State pension is a regular payment from the Government that most people can claim when they reach the State pension age. This pension will provide you with a basic level of retirement income, provided you qualify. There are two main types of the State pensions – contributory and non-contributory.
The contributory State pension is paid to people from the age of 66 who have made enough Pay Related Social Insurance (PRSI) contributions during their working life. It is not means-tested and you can continue to earn other income. This pension is taxable but if it is your only source of income it is unlikely you will have to pay tax.
The non-contributory State pension is paid out to people who do not qualify for a contributory pension or who only qualify for a reduced contributory pension based on their PRSI contributions. It is means tested and is paid out from the age of 66. This pension is taxable but you are unlikely to pay tax if it is your only income.
To find out more about State pensions visit the Department of Social Protection website.
Last updated on 7 January 2021