Changes to the State Pension

Changes to the State Pension

State Pension Image

For some the State Pension, of approximately €14,500 per annum will be an important source of income in retirement. However, significant changes in when the State Pension can be claimed apply from 1st January 2024, and from 1st January 2025 the way in which a new State Pension entitlement is calculated will be changed. So, from the 1st of January 2025, the yearly average method of calculating the State Contributory Pension will be gradually phased out over a 10-year period so that by 2035, the State Pension will be determined entirely on the Total Contributions Approach (TCA) basis. Under the Total Contributions Approach, you are entitled to the maximum Pension if you have at least 2,080 reckonable contributions (paid + credited), i.e. 40 years, by the time you claim the Pension. If you have less than 2,080 reckonable contributions at that time, you get a proportion of the Pension.

Example: If you claim the State Pension when you have 1,840 reckonable contributions, your Pension under the TCA basis will be 1,840/2,080 or 88.5% of the maximum rate of Pension, €12,833.

The main reckonable PRSI contributions are Class A and S. This will favour some but lead to others getting a lower Pension than they might have got if the full Yearly Average basis continued to be available. This means that some applicants may not have the annual average weekly reckonable PRSI contributions to be eligible for the full state pension.

Therefore, if you are over 60 years of age, you are encouraged to check your PRSI record by registering at, to see what your likely State Pension will be at age 66. If you are likely to fall short of the required annual average weekly reckonable PRSI contributions, there are several ways highlighted in the attached article by Tony Gilhawley that will allow you to boost your PRSI record.

Changes to the State Pension by Tony Gilhawley, Financial Broker February 2024