State Pension Calculator (Contributory).

How The State (Contributory) Pension Works

The State Pension (Contributory) is a payment made to people from the age of 66 who have paid enough social insurance contributions.

This pension is not means-tested, which means it is not affected by other income or savings you might have. However, your entitlement to the full pension amount is dependent on your social insurance contribution record.

Eligibility and Calculation Methods

To qualify for the State Pension (Contributory), you must have:

• Started paying social insurance before a certain age.
• Paid at least 520 full-rate social insurance contributions.

The pension amount is calculated using two methods: the Total Contributions Approach (TCA) and the Yearly Average Contributions method. The higher amount from these two calculations will be your weekly pension rate.

Method 1: Total Contributions Approach (TCA)

This approach considers your total number of reckonable contributions, including credited contributions and home caring periods. The maximum combined total of these is 2080 contributions. If your total reckonable contributions plus capped combined contributions are 2080 or more, you will receive the maximum pension rate.

Method 2: Yearly Average Contributions

This method calculates the average number of contributions you have made each year over your working life. Depending on this average, your pension rate is adjusted as follows:

How the Calculator Works

The State Pension (Contributory) Calculator is a tool that helps you estimate your weekly pension rate based on your contribution record. Below is an explanation of how to use the calculator and understand the results:

Inputs and their Definitions:

• Total Reckonable Contributions: Enter the total number of contributions you have made. A contribution is defined as a week of employment.
• Reckonable Credited Contributions (max 520): Enter the number of credited contributions, capped at 520. This is time spent out of work on jobseekers / unemployment benefit.
• Home Caring Periods (max 1040): Enter the number of home caring periods, capped at 1040. Home Caring Periods are applicable to individuals who take time out of the workforce to care for children under 12 years of age or to care for an incapacitated person of any age.
• Total Years Worked: Enter the total number of years you been in the workforce. It is the time between you first entering the workforce, and retiring from the workforce.
• Maximum Pension Rate (current): The current maximum pension rate, which is set to €277.30 per week, is the 2024 rate.

Calculation Methods:

Method 1: Total Contributions Approach (TCA):

To determine your Total Contributions Approach (TCA) for the State Pension (Contributory), calculate the combined contributions by adding reckonable credited contributions and home caring periods. If the combined contributions exceed 1,040, cap them at 1,040. Then, add the total reckonable contributions to the capped combined contributions to get the total TCA. If your total TCA is 2,080 or more, you receive the maximum pension rate; otherwise, your pension rate is proportional to your total TCA.

Method 2: Yearly Average Contributions:

To determine your entitlement under the Yearly Average Method, first add the total reckonable contributions to the reckonable credited contributions. Then divide this sum by the total years worked to calculate the yearly average.

Then you calculate the % of the state pension you are entitled to based on the table outlined above.

Result

The final pension rate will be the higher value obtained from either the Total Contributions Approach (TCA) or the Yearly Average Contributions method. The result will display your calculated weekly pension rate.

By understanding these methods and using the calculator, you can estimate your State Pension (Contributory) and plan for your retirement more effectively.

Disclaimer: This is the beta version of the calculator. For any inquiries or discrepancies, Revenue.ie provides the most accurate and up-to-date information.