Question on compulsory retirement before OAP

YellowFeather

Hi all

I have a question on behalf of my mum. She works in an area in the HSE where retirement is mandatory at 65 - and this will happen next year. Once retired (and forgive me if I am wrong in any of this), she will receive the financial equivalent of the Old Age Pension each week until she is 66. However, with this, she will not receive any medical card or travel card.

My mum does not have any other income, and is wondering, firstly, if this information is correct and, secondly, if there is some way to apply to be means tested or the like for a medical card in particular, or if there is some other route she should be taking? She has been looking for availability of agency work, but there is nothing arising for her at all.

I can give more detail as required - and appreciate any advice given!

Thanks
YF

Nomis21

I am not an expert but I have studied this as I am nearing the same age.

Your Mum will receive Jobseeker's Benefit for one year until she receives her pension. Being over 62, your Mum will have to be 'available' for work but will not be expected to apply for jobs.

Your Mum will not receive a travel card. but she will be able to apply for a medical card as that is means tested.

infogiver

Hi
Was your mum paying a D class or A class PRSI contribution?
This is vital when discussing her options.

YellowFeather

Thanks both.

That's good to know that the medical card can be means tested. I would assume (hope) that my mum would qualify once she is no longer in her job.

@ infogiver - my mum has been paying A class PRSI contributions.

Atari Jaguar

YellowFeather wrote: »

Thanks both.

That's good to know that the medical card can be means tested. I would assume (hope) that my mum would qualify once she is no longer in her job.

@ infogiver - my mum has been paying A class PRSI contributions.

She will be offered a medical card assuming she's the only income at the address and if not then the combined income doesn't reach a certain amount per week. I believe also if you have over 20k in savings you are not entitled.

infogiver

Atari Jaguar wrote: »

She will be offered a medical card assuming she's the only income at the address and if not then the combined income doesn't reach a certain amount per week. I believe also if you have over 20k in savings you are not entitled.

None of this is correct.

infogiver

YellowFeather wrote: »

Thanks both.

That's good to know that the medical card can be means tested. I would assume (hope) that my mum would qualify once she is no longer in her job.

@ infogiver - my mum has been paying A class PRSI contributions.

Hi OP
Easiest thing for your mum to do is apply for a medical card as soon as she is unemployed. Just fill in the application form. Does your mother have a spouse or partner/cohabitant?
If she does she will have to declare his/her income.
Medical cards will allow for any mortgage or rent that she pays and for house insurance.
The means test looks at savings or capital in excess of 36000 if she's single or 72000 if she's in a cohabiting couple.
Your mother will be in receipt of Jobseekers Benefit for the 12 months between she retired at 65 and her 66th birthday. This is a maximum of 188 per week depending on her earnings in the relevant tax year. When she gets to pension age she will apply for Con pension about 9 weeks in advance
If she's living alone she will get the living alone increase of €9 and the free tv license and €35 electricity credit every month.
She will be means tested for the fuel allowance
The pension form invites her to be considered for the living alone and the fuel allowance but the tv license and electricity allowance must be applied for
separately
Does she have already the new public services card? If not she and actually everyone should go to their local SW office to apply for one.
She will need one before she can get her free travel card at 66

Atari Jaguar

infogiver wrote: »

None of this is correct.

Yes it is.

Income above 184 for a single person or 266.50 for a person under 66 is regarded during the means test unless it is a social welfare payment. And capital, savings, investments and property up to 36,000 is disregarded for a single person and up to 72k for a couple. After which it is assessed at every 10k, adding to your means €1 for every €1,000 of the above.

infogiver

Atari Jaguar wrote: »

Yes it is.

Income above 184 for a single person or 266.50 for a person under 66 is regarded during the means test unless it is a social welfare payment. And capital, savings, investments and property up to 36,000 is disregarded for a single person and up to 72k for a couple. After which it is assessed at every 10k, adding to your means €1 for every €1,000 of the above.

Your post which I pointed out for the benefit of the OP was incorrect stated that
a. The mother would be "offered " a medical card. You have to apply for a medical card and be means tested,
b. That the savings threshold is 20000. It's not.

infogiver

OP can I ask... is your mother a widow?

js35

Hi op
My dad was in this position last year ....after working for the same company for 51 years when he hit 65 last year he was required to sign on to jobseekers for 1 year until the pension kicked in when he turned 66. Sickening really considering the length of time in employment

infogiver

js35 wrote: »

Hi op
My dad was in this position last year ....after working for the same company for 51 years when he hit 65 last year he was required to sign on to jobseekers for 1 year until the pension kicked in when he turned 66. Sickening really considering the length of time in employment

Did your dad not feel ready for retirement?
This is a growing problem. Employees contracts say that they must retire at 65 yet an increasing number don't feel that they're ready to "shuffle off".
But what about school leavers ready for the work place?
It's hard to know how to get the balance,
State pension age has moved from 65 to 66 and for me it will be 67 and for my brother 68.
In the near future it will be 70 and then more.
The State can't afford to pay people pensions for 30 years.
An ever increasing generation of 90+ people need pensions, free medical attention, free travel free tv licenses, they also need a carer to be paid weekly who also needs these free extras.
We also have all the young people who don't have jobs but need to be fed and housed and have their children fed and housed, even though foreign nationals continue to come to Ireland to work in the service/manufacturing industry.
All this money comes from one pot. The tax payer.
The same pot that pays teachers Gardai doctors nurses paramedics etc. The same pot that pays for the upkeep of roads schools hospitals libraries waste collection etc
It's a ticking time bomb.

Atari Jaguar

infogiver wrote: »

Your post which I pointed out for the benefit of the OP was incorrect stated that
a. The mother would be "offered " a medical card. You have to apply for a medical card and be means tested,
b. That the savings threshold is 20000. It's not.

Offered after an application is what I meant - I also said savings are taken into account but I wasn't sure of exact figure.

infogiver

Pension age is 66 now so your mum won't be getting the pension until then.
That's nailed down
The maximum she will get is €188 per week between her 65 and 66th birthdays.
There is no extra money for those paying mortgages.
She will have no extra benefits in that period I'm afraid.
For a long time pension age was 65 for those who had completely retired, but that ceased some years ago.
Your mum may not realise that.
The €219 you mention is actually now €222 and that is the maximum non contributory pension, paid also at 66.
The maximum contributory pension is 233.30.
This is based on your mother having a PRSI average of 48.
Does your mother know her PRSI history?
Is she going to get a HSE occupational pension as well as a state pension?
She needs to go to CIC and bring her PPSN.
She is going to find it hard to pay the mortgage on €188, does she get any maintenance from your dad? Is that an option?
Edited to add, if your dad has passed away, the fact that they were divorced would not prevent her from getting a widows contributory pension right now.
Coming to the end of your working life can be financially very stressful. It's very important that people get accurate information to help them to make good decisions.
Don't allow your mother to rely on well meaning but possibly inaccurate or out of date advice from friends and family.
SW for the elderly has evolved and changed a lot in the last few years.
Either go to the CIC or go to your local Intreo office to get a clear picture with up to date info.