Pension savings in bank account

Hi all!

New member here!

A relative who passed away recently managed to build up a sizeable (70K) amount of savings over the course of many years. Their only source of finance for many years was the state non-contributory pension.

We've been told that state will now be taking the most of that as she shouldn't have had more than 20K in savings to qualify for the pension.

Does that sound right to you?

I'm sure some of the more experienced pension advisors will also respond, but yeh it is sadly likely to happen as after 20k of savings, the amounts start reducing down due to the means test - https://www.citizensinformation.ie/...t_for_social_welfare_payments/means_test.html

It'll be a lot of work to try show that much beyond the 20k should have been kept.

The non contributory pension is means tested, but it is still quite generous.
An especially prudent person might, along with other state benefits, still be able to save money each week.
If a person lives for 25 years and saves 50 quid a week, they could accumulate 70k.
The non con pension is calculated to be a subsistence level welfare payment. So, in theory, every penny should be spent, every week.
It might seem unfair, but the lesson is that individuals on this benefit payment should save very little and never go over the 20k. Give the 50 quid to grandchildren, or spend it on something, anything.

ryaner said:

I'm sure some of the more experienced pension advisors will also respond, but yeh it is sadly likely to happen as after 20k of savings, the amounts start reducing down due to the means test - https://www.citizensinformation.ie/...t_for_social_welfare_payments/means_test.html

It'll be a lot of work to try show that much beyond the 20k should have been kept.

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Not only that, but every applicant for the State N-C pension signs an undertaking that they will advise the Department in the event that their financial circumstances change.

In the situation outlined above, the deceased should have notified the Department that their assets exceeded the €20K threshold. (Furthermore, it it possible that the Department wrote to him/her from time to time asking them to confirm that their circumstances hadn't changed; they have certainly tightened up on this in recent years. )

It's pretty unfortunate they the beneficiaries will lose out due the deceased's frugality, but those are the rules.

If someone on a NC pension has excess funds they should buy durable goods they can enjoy or else donate small amounts to family instead.