How to calculate a deferred State Pension (Contributory) rate

You can start claiming the State Pension (Contributory) anytime between the ages of 66 and 70. If you choose to delay claiming your pension until after 66, it is called deferring your pension. A higher rate of State Pension (Contributory) (SPC) is paid if you defer claiming your State Pension (Contributory).

In this page, we show to how to calculate your State Pension (Contributory) rate if you choose to defer.

Other benefits also deferred

You may be eligible for other benefits when you start (draw down) your SPC. This may include the Living Alone Increase, Household Benefits Package and Fuel Allowance. If you defer your SPC, these benefits will also be deferred.

The rate of State Pension (Contributory) (SPC) you get depends on when you start (draw down) your SPC. The rate increases for every year you defer claiming the SPC, up to the age of 70.

In 2025, the maximum State Pension (Contributory) weekly rates:

If you don’t qualify for the maximum rate, you may get a reduced rate (a proportion of the maximum rate).

You can also get a payment for your child dependants (known as a Child Support Payment).

Step 1: Calculate your total PRSI contributions

You need to check how many PRSI contributions you will have made up to your State Pension (Contributory) (SPC) start date. This is known as your ‘drawdown date’.

Before you drawdown your SPC, you must:

• Have been paying PRSI for at least 10 years, and
• Have enough full-rate PRSI contributions.

Your rate of State Pension (Contributory) depends on:

• The age you are when you drawdown your SPC
• The number of PRSI contributions you have

You can check your contribution record.

Step 2: Calculate your SPC rate using the Total Contributions Approach (TCA) method

If you have 2,080 or more PRSI contributions, you will get the maximum personal rate of State Pension (Contributory).

If you have fewer than 2,080 contributions, you will qualify for a percentage of the maximum SPC deferral rate. For example, having 1,040 contributions means you get 50% of the maximum SPC deferral rate.

If you don’t get the maximum SPC rate using the TCA method: Go to Step 3.

Step 3: Calculate your SPC rate using the combined Yearly Average (YA) method and TCA method

In 2025, to calculate your rate, you add:

• 10% of your SPC deferral rate using the Total Contributions Approach (see above), with
• 90% of your SPC deferral rate using the Yearly Average method

The ratio or percentage used depends on the year you draw down your State Pension (Contributory).

The Yearly Average (YA) deferred SPC weekly rates in 2025:

*Only the Yearly Average (YA) rates for people deferring to age 67 in 2025 are currently available.

Susan was 66 in 2024 and chose to defer claiming the SPC to age 67 in 2025.

Step 1

Check:

1. Did Susan start paying PRSI at least 10 years before her drawdown date? Susan started work in 1988. It is 36 years since Susan started insurable employment.
2. Does Susan have enough full-rate PRSI contributions to qualify for the SPC? Susan has a total of 834 PRSI contributions. 520 of these are full-rate PRSI contributions from employment.

Now we know Susan qualifies for the SPC, but how much will she get? Go to Step 2.

Step 2

Calculate Susan’s SPC rate using the TCA method

If total is less than maximum

€121.43 is less than the maximum SPC rate for deferral to age 67. Go to Step 3 to find out if Susan will get a higher rate of SPC using the combined YA method and TCA method.

Step 3

Calculate Susan’s SPC rate using the combined Yearly Average (YA) method and TCA method

First: Calculate Susan’s SPC rate using the Yearly Average method

Susan started work in 1988. She will draw down her SPC age 67 in 2025. It is 36 years from when Susan began insurable employment to the end of the last complete tax year before drawdown.

Susan will have a total of 834 PRSI contributions up to the date she draws down her SPC.

Next: Combine Susan's YA and TCA rates

In 2025, to get the final weekly deferred SPC rate, add:

• 90% of the Yearly Average SPC rate and
• 10% of the Total Contributions Approach SPC rate

(In 2026, 80% of the Yearly Average rate and 20% of the TCA rate will be used.)

Susan’s 90% YA rate + 10% of her TCA rate = Susan's deferred SPC weekly rate

Comparing our totals for Step 2 and Step 3, we see that Susan will get a higher deferred SPC weekly rate using the combined YA and TCA method in Step 3.

You may be considering whether to defer your pension. Here you can see an example of the difference between rates if you draw down age 66 in 2025 or if you deferred your drawdown to age 67 in 2025.

Calculation based on:

• Total number of PRSI contribution = 834
• Yearly average number of PRSI contribution = 23.16
• SPC draw down in 2025

SPC draw down age 66

SPC weekly rate using the TCA method = €115.98

SPC rate using the combined YA and TCA method at age 66 in 2025 is €233.27 per week (€12,130 per year).

SPC draw down age 67

SPC weekly rate using the TCA method = €121.43

SPC rate using the combined YA and TCA method at age 67 in 2025 is €244.23 per week (€12,699.96 per year).

Other benefits

You may be eligible for additional benefits when you draw down your SPC such as the Living Alone Increase, Household Benefits Package and Fuel Allowance. If you defer your SPC these benefits will also be deferred.

For further information on this page, or help with calculating your SPC rate, contact your nearest Citizens Information Centre.