Elderly relative with no state pension, is accountant to blame ?

Hi all
I have recently found out that an elderly female relative has zero state pension. She was a housewife all her life with no employment income. Husband a farmer and with a very good income from a separately run business. Used an accountant every year to file returns etc. They would have been comfortably well off. Is it the case that the accountant should have advised this couple to pay PRSI contributions for some years prior to her retirement. She is now in her late 70s. The husband does get a state pension. I have heard of another farming relative who would have been far less well making PRSI contributions for his wife prior to retirement and both husband and wife are now in receipt of the old age pension. The couple in question would have place their blind trust in this accountants professional advice but I wonder now were they correctly advised ?

The qualified adult portion of the husbands State pension (if he has one) is means tested and perhaps the wife has assets which would disqualify her. Perhaps she is a joint owner of the farm or business.

Not sure if it is the duty of the Accountant to advise on payment of PRSI, maybe 20 or 30 years ago to qualify for pension

@sahd very useful information, thank you

excuse my limited knowledge, but does it matter what class PRSI the husband has been on when working? self employed for example?

laois1 said:

Is it the case that the accountant should have advised this couple to pay PRSI contributions for some years prior to her retirement.

The couple in question would have place their blind trust in this accountants professional advice but I wonder now were they correctly advised ?

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Anybody in business would have considered putting their spouse on the books, I'm sure it was discussed amongst the couple and a decision made not to do it. Lots of people don't for various reasons, inertia, cost etc. You are assuming that the professional is reasponsible for everything. I would consider someone who is in business should themselves thought of all options and then asked for advice.

I'd say it doesn't even occur to a lot of people.

You are absolutely correct Albacorea, but the problem is that 30 years or more ago people certainly did not think of making PRSI or voluntary PRSI payments.

Unfortunately they are now pension age and wonder why there is no pension there for them