# Lump sum and means test for JA



## newseeker1 (19 Sep 2009)

Hi
My brother lost his job l last year. He got redundancy but hasnt found work since
He is single man with no partner or kids in his mid 40's.
He has been shrewd with his money over the years invested wisely - not a skinflint by any stretch of the imagination but was careful and has fair bit of savings behind him
He doesnt have mortgage and doesnt have any loans that i know off
Hes been on Job Seeker Allowance or Benefit or some of those benefits since losing his job but from speaking with him i understand this runs out after 12 months after which time its means tested 
I dont think he will have job by time it runs out and if he doesnt he believes that he wont get anything when the means test it when they look at savings he has 

I dont know exactly how much he has in savings - think it fair bit when the redundancy is thrown in - could be maybe 200k i- i know his redundancy was near 100k as he worked in company long time and had moved up the ladder but dont know for definate- he hasnt said

I fell sorry for him in a way. He worked hard all his life to date, paid his taxes and contributed to society and would be honest guy. 

Is it case he wont get anything from SW when 12 months is over 

Thoughts/suggestions anyone of would forum members just say tough break


----------



## pudds (19 Sep 2009)

*Re: means test on lump sum*

Has the savings disregard amount been increased from 20k to 50k cause on a link I got from sw a while back seemed to say this. 

@ scotty a few years ago I had 54k in savings and only got about €100 from welfare. But I think I would prefer to have been in your friends situation 200k and got no welfare. 

He should sign for credits though.


----------



## gipimann (20 Sep 2009)

*Re: means test on lump sum*

There can be different disregards depending on what's being applied for.

The savings disregard when means-testing for Disability Allowance is 50k, for jobseeker's allowance it's still 20k.

For Supplementary Welfare Allowance, it's 5k.


----------



## pudds (20 Sep 2009)

*Re: means test on lump sum*



gipimann said:


> There can be different disregards depending on what's being applied for.
> 
> The savings disregard when means-testing for Disability Allowance is 50k, for jobseeker's allowance it's still 20k.
> 
> For Supplementary Welfare Allowance, it's 5k.



aw right, got ya, cheers.


----------



## newseeker1 (21 Sep 2009)

*Re: means test on lump sum*

So, what options does my brother have if any.  Is best/only route to invest large amount of the money into an account where you cant access it for 1,2,3,5 years.

Would that work in terms of getting entitlements from SW once 12 months on jobseekers is over?

Are there any other options/things he could do

Thanks


----------



## Welfarite (22 Sep 2009)

*Re: means test on lump sum*

Any amount over 20k will be assessed as means. See the keypost and follow links there dfor means testing of capital. If he has over 100k, he probably won't qualify for JA. His only option is to sign for credits to maintain possible future entitlements to pensions, etc..


----------



## newseeker1 (22 Sep 2009)

*Re: means test on lump sum*

Any amount over 20k will be assessed as means. See the keypost and follow links there dfor means testing of capital. If he has over 100k, he probably won't qualify for JA. His only option is to sign for credits to maintain possible future entitlements to pensions, etc.. 

Hi 
Thanks for replies and information 
Sorry for asking stupid question but what keypost are you referring too and where do i go to find this and the links there for means testing of capital

Sorry if this is stupid qs
Thanks


----------



## Welfarite (22 Sep 2009)

*Re: means test on lump sum*

Keypost here.


----------



## newseeker1 (22 Sep 2009)

Thanks 
Which section in the keypost contains the link for 'means testing for capital'.  I dont seem to see this 

Thanks


----------



## Welfarite (23 Sep 2009)

*What happens if I don’t have enough PRSI (‘stamps’) paid to qualify for Jobseeker’s Benefit?

*You can apply for Jobseeker’s Allowance ('dole'), which is means tested. Details of how means are assessed are here, but basically, any other income is assessed as well as value of second property, savings, shares, etc.. There is no limit to how long you can claim Jobseeker’s Allowance.


----------



## Bronte (23 Sep 2009)

One has to do the sums on this.  Some ideas: How much will he get for investing the money?  A home is allowed, maybe he should trade up or do up the house now to reduce the savings, buy the new car now to see him through the next 10 years etc.  Should he move elsewhere to have a better chance of a job.  If he doesn't think he will get a job soon maybe he should tour the world.  Can he upskill via education for a couple of years using his saving to live off.  Can he use the 200K to get a better return than the dole can pay him, say an investment property, a business which both gives him a job and income.


----------

