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State Pension System:
The Irish state pension is designed to give a retirees a basic retirement income.  There are two forms of State Pensions in Ireland: The Contributory State Pension and The Non-Contributory State pension.

Contributory State Pension
The Contributory State Pension is a social insurance program that constructs pensions from a contribution-based payment system (a pay as you go system). Because workers contribute to the pension themselves it is not a means tested system. It is allotted to those over the age of 66 who have fulfilled the following qualifications:


 * Began paying social contributions by the age of 56 (this age is raised for those born before 1922).
 * Have paid at least 520 full rate contributions before reaching the qualifying pension age.
 * Met the average number of contributions per year. This average can be achieved in two different ways. Method one, called the normal average, is achieved by meeting a yearly average of ten adequate contributions from 1953 or the year one enters insurance, whichever is later, to the qualifying pension age. Method two, called the alternative average, is achieved by having an average of 48 contributions from 1980 to the pension qualifying age. These contributions can be Class A, E, F, G, H, N, or S social contributions.

The Contributory State Pension can be paired with other income and is taxable, but it is unlikely to be taxed if it's a pensioners sole income. The pension can max out at a yearly value of €12,651.60. A pensions maximum value is not determined by the pensioners earnings level, but their social insurance contribution history. Having an average of 10 adequate contributions a year will garner the minimum pension, while an average of 48 and above will garner you the maximum pension.

Non-Contributory State Pension
The Non-Contributory State Pension is for those over the age of 66 who are unable to qualify for a Contributory State Pension. To qualify for the Non-Contributory State Pension one must be a habitual resident of Ireland and pass means test. The means test evaluates a citizens cash income, capital (excluding their home), and income derived from personally used property.

Recent Changes to the State Pension System:
The Social Welfare and Pensions Act of 2011 made changes to the qualifications needed for both the Contributory and Non-Contributory State Pensions. The act rose the qualifying age from 66 in a stepwise manner. Those born after 1 January 1955, but before 1 January 1961 are now are eligible to collect their state pension at 67. All those born after 1 January 1961 will be eligible to collect their pensions at 68. Raising the pension eligibility age of pensions is a contentious issue, but a slim majority of  53% acknowledge the fiscal need to raise the eligibility age.

More changes to the qualifications for the Contributory State Pension are expected to be rolled out in 2020. These changes are being implemented to shift more future pensioners over to Contributory State Pensions in an attempt to reduce the fiscal impact of the pension system. Currently 19% of pensioners are on Non-Contributory State Pensions and spending on these pensions makes up 16 % of the budget. These changes will not affect those currently on Non Contributory Pensions.