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Non-contributory state pension query

  • 11-09-2019 01:57PM
    #1
    Tusky
    Registered Users, Registered Users 2 Posts: 17,097 ✭✭✭✭


    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. The other person has just turned 66 and does not have enough stamps for a contributory pension. They have about 20k savings.

    My question is in relation to the means test. I understand the spouse's income is split 50/50 so in this case, €18k each or €346.15 a week (1. assuming before tax figures are used). Each person is then allowed earn €200 income, meaning their income is €146.15 a week each. This is below the statutory limit of €257.50, so they should be entilted to a reduced rate non-contributory pension - is this correct or have I gone wrong somewhere?

    1/ When assessing income - do you use before or after tax figures?

    2 Do both people get to write off income of €200 a week even if it only comes from one source?

    Appreciate all help.


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