Non State Contributory state pension - Savings?

lightspeed

Hi

Can anyone clarify the below.

My dad is on disability and my mam has not worked in many years but at present he gets an extra amount for her which i think is the amount for a qualiifed adult.

He is no due to get the non contributory state pension in a few months.

The issue is my mam inherited some money when her mother passed. I think its around 45k.

As my parents never had much money to spend they have been careful to keep this money by as a rainy day fund as they get older.


"Your means under the various headings are added together to see what level of pension, if any, you can get. If you are one half of a couple (married couple, civil partners or a cohabiting couple of the same or opposite sex) then your means are taken to be half of the total means of yourself and your spouse, civil partner or cohabitant. Note that you can have savings or assets of up to €20,000 and earnings of up to €200 per week from employment and still qualify for a full State Pension (Non-Contributory). The first €30 per week of means as assessed by the Department of Social Protection does not affect the rate of pension. After that, the pension is reduced by €2.50 each week for every €2.50 of means.


Can someone clarify if the above means my parents will get significantly less?


what does the last line mean with regards to savings in excess of the 20k exempt amount?


Like would it be in my parents case, 25k/€2.50 = €12,500/52 weeks = €500 deducted per week?


So they would not be entitled to anything?

Plugguy

lightspeed wrote: »

Hi

Can anyone clarify the below.

My dad is on disability and my mam has not worked in many years but at present he gets an extra amount for her which i think is the amount for a qualiifed adult.

He is no due to get the non contributory state pension in a few months.

The issue is my mam inherited some money when her mother passed. I think its around 45k.

As my parents never had much money to spend they have been careful to keep this money by as a rainy day fund as they get older.


"Your means under the various headings are added together to see what level of pension, if any, you can get. If you are one half of a couple (married couple, civil partners or a cohabiting couple of the same or opposite sex) then your means are taken to be half of the total means of yourself and your spouse, civil partner or cohabitant. Note that you can have savings or assets of up to €20,000 and earnings of up to €200 per week from employment and still qualify for a full State Pension (Non-Contributory). The first €30 per week of means as assessed by the Department of Social Protection does not affect the rate of pension. After that, the pension is reduced by €2.50 each week for every €2.50 of means.


Can someone clarify if the above means my parents will get significantly less?


what does the last line mean with regards to savings in excess of the 20k exempt amount?


Like would it be in my parents case, 25k/€2.50 = €12,500/52 weeks = €500 deducted per week?


So they would not be entitled to anything?

My understanding of the means test in your parents situation is that when your dad applies for the State Pension, the €45,000 is halved, this means that the means test will apply to only €22,500. The first €20,000 of this is not taken into account. This leaves only €2,500 that will be assessed. You dad will have a weekly means assessed of €2.50c. This is then doubled which brings it up to €5 per week. If a person applying for the Non-Contribtuory State Pension has a weekly means as assessed by the Department of Social Protection of less than €30.00 (which applies to your dad) then they will receive the full amount of the State Pension.

You should really contact your Citizens Information Office and give them the details. They will explain it to you.