Non-contributory state pension query

NapalmBackflip

New Member
Messages
3
Hi folks,

I'm trying to help a family friend with a pension question and I'm struggling to figure this out. Hopefully yea can help.

Lets say you have a couple (aged 65 and 66). The 65-year-old is still working with an income of about €36,000 (before tax). The other person has just turned 66 and does not have enough stamps for a contributory pension. They have less than 20k in savings. They have no other income or property apart from a family home.

Is the 66-year-old eligible for a non-contributory state pension?

Appreciate all help.https://forums.moneysavingexpert.com/newreply.php?do=newreply&noquote=1&t=6046950
 

Feemar5

Frequent Poster
Messages
293
Non contributory pension is means tested and the means of both partners are taken into account. However, the first €200 of income is disregarded and €20,000 of savings is also disregarded. When the means are calculated the first €30 is also disregarded. Your friend should apply as everyone who does not have enough of paid contributions is entitled to apply for the non contributory pension and they will get whatever is due to them after their means is calculated. If they receive a payment they are supposed to notify the department of any change in their financial income .
 

NapalmBackflip

New Member
Messages
3
Non contributory pension is means tested and the means of both partners are taken into account. However, the first €200 of income is disregarded and €20,000 of savings is also disregarded. When the means are calculated the first €30 is also disregarded. Your friend should apply as everyone who does not have enough of paid contributions is entitled to apply for the non contributory pension and they will get whatever is due to them after their means is calculated. If they receive a payment they are supposed to notify the department of any change in their financial income .
Thanks for the reply. I was aware of all of the above but some things are unclear to me.

Regarding the means test - I understand if the couple only have one income it is split between them for the purpose of assessing means. But is this before or after tax?

And can each person then disregard the first €200 per week, even if it is coming from one income?

Also, I understand each persons means must be below €257.50 per week to qualify. But with the first €200 being disregarded, does this in fact mean you can have income of €457.50 and qualify?
 

Feemar5

Frequent Poster
Messages
293
As I understand it the €200 disregard is from each persons income - it is not joint. As far as I can see tax is not deductible
State Pension (Non Contributory)
  • The first €200 of net weekly earnings from employment is disregarded.
  • Net earnings are gross earnings less PRSI, Superannuation/PRSA contributions and union dues.
 

NapalmBackflip

New Member
Messages
3
As I understand it the €200 disregard is from each persons income - it is not joint. As far as I can see tax is not deductible
State Pension (Non Contributory)
  • The first €200 of net weekly earnings from employment is disregarded.
  • Net earnings are gross earnings less PRSI, Superannuation/PRSA contributions and union dues.
So do I subtract €200 from the total weekly income (minus PRSI) and then divide by 2? Or do I divide by 2 and then subtract €200 from each person's income?
 
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