State Pension (Contributory) calculations examples from 2025 to 2034

From 2025, the Yearly Average method will begin to be phased out over a 10-year period. By 2034 all rates of payment will be calculated using only the Total Contribution Approach.

During the 10-year transition period, the rate of State Pension (Contributory) payable will be calculated using two methods as set out in the table below.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Method 1: The Total Contribution Approach (TCA) will be used to determine a rate of payment. If you get the full State Pension (Contributory) rate using this calculation, no further calculation is necessary.

If you get less than the full State Pension (Contributory) rate using the TCA, we will consider a rate using Method 2.

Method 2:A rate of payment will be calculated using the combined rate approach. This is a combination of a proportion of the Total Contributions Approach with a proportion of the Yearly Average Methodto calculate the rate payable.

The proportion of Yearly Average rate used in 2025 will be 90%.

The proportion of TCA rate used in 2025 will be 10%.

These two proportion rates will then be combined to determine the rate of State Pension (Contributory) payable to you.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Example 1:

Ann turns 66 in April 2025 and decides to draw down her pension on turning 66.

Method 1

Under TCA Ann’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, the department will consider a rate for Ann using Method 2.

Method 2

Ann’s Yearly Average Rate €255 x 90% = €229.50

Ann’s TCA Rate €260 x 10% = €26

€255.50

As Ann’s Method 1 rate is higher, this is the rate of State Pension (Contributory) she will get.

Example 2:

Joan turns 66 in April 2025 and decides to draw down her pension on turning 66.

Method 1

Under TCA Joan’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Joan using Method 2.

Method 2

Joan’s Yearly Average Rate €270 x 90% = €243

Joan’s TCA Rate €260 x 10% = €26

€269

As Joan’s Method 2 rate is higher, this is the rate of State Pension (Contributory) she will get.

Method 1: The Total Contribution Approach will be used to determine a rate of payment. If you get the full State Pension (Contributory) rate using this calculation, no further calculation is necessary.

If you get less than the full State Pension (Contributory) rate using the TCA, we will consider a rate using Method 2.

Method 2: A rate of payment will be calculated using the combined rate approach. This is a combination of a proportion of the Total Contributions Approach with a proportion of the Yearly Average Method to calculate the rate payable.

The proportion of Yearly Average rate used in 2026 will be 80%.

The proportion of TCA rate used in 2026 will be 20%.

These two proportion rates will then be combined to determine the rate of State Pension (Contributory) payable to you.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Example 1:

Ann turns 66 in April 2026 and decides to draw down her pension on turning 66.

Method 1

Under TCA Ann’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Ann using Method 2.

Method 2

Ann’s Yearly Average Rate €255 x 80% = €204

Ann’s TCA Rate €260 x 20% = €52

€256

As Ann’s Method 1 rate is higher this is the rate of State Pension (Contributory) she will get.

Example 2:

Joan turns 66 in April 2026 and decides to draw down her pension on turning 66.

Method 1

Under TCA Joan’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Joan using Method 2.

Method 2

Joan’s Yearly Average Rate €270 x 80% = €216

Joan’s TCA Rate €260 x 20% = €52

€268

As Joan’s Method 2 rate is higher, this is the rate of State Pension (Contributory) she will get.

Method 1: The Total Contribution Approach (TCA) will be used to determine a rate of payment. If you get the full State Pension (Contributory) rate using this calculation, no further calculation is necessary.

If you get less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate using Method 2.

Method 2: A rate of payment will be calculated using the combined rate approach. This is a combination of a proportion of the Total Contributions Approach with a proportion of the Yearly Average Methodto calculate the rate payable.

The proportion of Yearly Average rate used in 2027 will be 70%.

The proportion of TCA rate used in 2027 will be 30%.

These two proportion rates will then be combined to determine the rate of State Pension (Contributory) payable to you.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Example 1:

Ann turns 66 in April 2027 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Ann’s rate works out at €260

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Ann using Method 2.

Method 2

Ann’s Yearly Average Rate €255 x 70% = €178.50

Ann’s TCA Rate €260 x 30% = €78

€256.50

As Ann’s Method 1 rate is higher this is the rate of State Pension (Contributory) she will get.

Example 2:

Joan turns 66 in April 2027 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Joan’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Joan using Method 2.

Method 2

Joan’s Yearly Average Rate €270 x 70% = €189

Joan’s TCA Rate €260 x 30% = €78

€267

As Joan’s Method 2 rate is higher this is the rate of State Pension (Contributory) she will get.

Method 1: The Total Contribution Approach (TCA) will be used to determine a rate of payment. If you get the full State Pension (Contributory) rate using this calculation, no further calculation is necessary.

If you get less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate using Method 2.

Method 2: A rate of payment will be calculated using the combined rate approach. This is a combination of a proportion of the Total Contributions Approach with a proportion of the Yearly Average Method to calculate the rate payable.

The proportion of Yearly Average rate used in 2028 will be 60%.

The proportion of TCA rate used in 2028 will be 40%.

These two proportion rates will then be combined to determine the rate of State Pension (Contributory) payable to you.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Example 1:

Ann turns 66 in April 2028 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Ann’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Ann using Method 2.

Method 2

Ann’s Yearly Average Rate €255 x 60% = €153

Ann’s TCA Rate €260 x 40% = €104

€257

As Ann’s Method 1 rate is higher this is the rate of State Pension (Contributory) she will get.

Example 2:

Joan turns 66 in April 2028 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Joan’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Joan using Method 2.

Method 2

Joan’s Yearly Average Rate €270 x 60% = €162

Joan’s TCA Rate €260 x 40% = + €104

€266

As Joan’s Method 2 rate is higher this is the rate of State Pension (Contributory) she will get.

Method 1: The Total Contribution Approach will be used to determine a rate of payment. If you get the full State Pension (Contributory) rate using this calculation, no further calculation is necessary.

If you get less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate using Method 2.

Method 2: A rate of payment will be calculated using the combined rate approach. This is a combination of a proportion of the Total Contributions Approach with a proportion of the Yearly Average Method to calculate the rate payable.

The proportion of Yearly Average rate used in 2029 will be 50%.

The proportion of TCA rate used in 2029 will be 50%.

These two proportion rates will then be combined to determine the rate of State Pension (Contributory) payable to you.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Example 1:

Ann turns 66 in April 2029 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Ann’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Ann using Method 2.

Method 2

Ann’s Yearly Average Rate €255 x 50% = €127.50

Ann’s TCA Rate €260 x 50% = €130

€257.50

As Ann’s Method 1 rate is higher this is the rate of State Pension (Contributory) she will get.

Example 2:

Joan turns 66 in April 2029 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Joan’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Joan using Method 2.

Method 2

Joan’s Yearly Average Rate €270 x50% = €135

Joan’s TCA Rate €260 x 50% = €130

€ 265

As Joan’s Method 2 rate is higher this is the rate of State Pension (Contributory) she will get.

Method 1: The Total Contribution Approach will be used to determine a rate of payment. If you get the full State Pension (Contributory) rate using this calculation, no further calculation is necessary.

If you get less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate using Method 2.

Method 2: A rate of payment will be calculated using the combined rate approach. This is a combination of a proportion of the Total Contributions Approach with a proportion of the Yearly Average Method to calculate the rate payable.

The proportion of Yearly Average rate used in 2030 will be 40%.

The proportion of TCA rate used in 2030 will be 60%.

These two proportion rates will then be combined to determine the rate of State Pension (Contributory) payable to you.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Example 1:

Ann turns 66 in April 2030 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Ann’s rate works out at €260

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Ann using Method 2.

Method 2

Ann’s Yearly Average Rate €255 x 40% = €102

Ann’s TCA Rate €260 x 60% = €156

€258

As Ann’s Method 1 rate is higher this is the rate of State Pension (Contributory) she will get.

Example 2:

Joan turns 66 in April 2030 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Joan’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Joan using Method 2.

Method 2

Joan’s Yearly Average Rate €270 x 40% = €108

Joan’s TCA Rate €260 x 60% = €156

€264

As Joan’s Method 2 rate is higher this is the rate of State Pension (Contributory) she will get.

Method 1: The Total Contribution Approach will be used to determine a rate of payment. If you get the full State Pension (Contributory) rate using this calculation, no further calculation is necessary.

If you get less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate using Method 2.

Method 2: A rate of payment will be calculated using the combined rate approach. This is a combination of a proportion of the Total Contributions Approach with a proportion of the Yearly Average Method to calculate the rate payable.

The proportion of Yearly Average rate used in 2031 will be 30%.

The proportion of TCA rate used in 2031 will be 70%.

These two proportion rates will then be combined to determine the rate of State Pension (Contributory) payable to you.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Example 1:

Ann turns 66 in April 2031 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Ann’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Ann using Method 2.

Method 2

Ann’s Yearly Average Rate €255 x 30% = €76.50

Ann’s TCA Rate €260 x 70% = €182

€258.50

As Ann’s Method 1 rate is higher this is the rate of State Pension (Contributory) she will get.

Example 2:

Joan turns 66 in April 2031 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Joan’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Joan using Method 2.

Method 2

Joan’s Yearly Average Rate €270 x 30% = €81

Joan’s TCA Rate €260 x 70% = €182

€263

As Joan’s Method 2 rate is higher this is the rate of State Pension (Contributory) she will get.

Method 1: The Total Contribution Approach will be used to determine a rate of payment. If you get the full State Pension (Contributory) rate using this calculation, no further calculation is necessary.

If you get less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate using Method 2.

Method 2: A rate of payment will be calculated using the combined rate approach. This is a combination of a proportion of the Total Contributions Approach with a proportion of the Yearly Average Method to calculate the rate payable.

The proportion of Yearly Average rate used in 2032 will be 20%.

The proportion of TCA rate used in 2032 will be 80%.

These two proportion rates will then be combined to determine the rate of State Pension (Contributory) payable to you.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Example 1:

Ann turns 66 in April 2032 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Ann’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Ann using Method 2.

Method 2

Ann’s Yearly Average Rate €255 x 20% = €51

Ann’s TCA Rate €260 x 80% = €208

€259

As Ann’s Method 1 rate is higher this is the rate of State Pension (Contributory) she will get.

Example 2:

Joan turns 66 in April 2032 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Joan’s rate works out at €260.

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Joan using Method 2.

Method 2

Joan’s Yearly Average Rate €270 x 20% = €54

Joan’s TCA Rate €260 x 80% = €208

€262

As Joan’s Method 2 rate is higher this is the rate of State Pension (Contributory) she will get.

Method 1: The Total Contribution Approach will be used to determine a rate of payment. If you get the full State Pension (Contributory) rate using this calculation, no further calculation is necessary.

If you get less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate using Method 2.

Method 2: A rate of payment will be calculated using the combined rate approach. This is a combination of a proportion of the Total Contributions Approach with a proportion of the Yearly Average Method to calculate the rate payable.

The proportion of Yearly Average rate used in 2033 will be 10%.

The proportion of TCA rate used in 2033 will be 90%.

These two proportion rates will then be combined to determine the rate of State Pension (Contributory) payable to you.

Having compared the outcome of Method 1 and Method 2, the higher rate will be awarded to you.

Example 1:

Ann turns 66 in April 2033 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Ann’s rate works out at €260

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Ann using Method 2.

Method 2

Ann’s Yearly Average Rate €255 x 10% = €25.50

Ann’s TCA Rate €260 x 90% = €234

€259.50

As Ann’s Method 1 rate is higher this is the rate of State Pension (Contributory) she will get.

Example 2:

Joan turns 66 in April 2032 and decides to drawdown her pension on turning 66.

Method 1

Under TCA Joan’s rate works out at €260

As this is less than the maximum State Pension (Contributory) rate using the TCA, we will consider a rate for Joan using Method 2.

Method 2

Joan’s Yearly Average Rate €270 x 10% = €27

Joan’s TCA Rate €260 x 90% = €234

€ 261

As Joan’s Method 2 rate is higher this is the rate of State Pension (Contributory) she will get.

From 2034 there will only be one method of calculation for your State Pension (Contributory) rate. All rates of payment will be calculated using the Total Contribution Approach method only.