# Case study: Working and claiming a State Pension (Non-Contributory)

## Working and claiming a State Pension (Non-Contributory)

### Case study

Joe is 67 years of age and has been claiming a State Pension (Non-Contributory) for over a year. He gets an increase in his payment for his wife, Jean.

Jean is 62 years old and works part-time as a bookkeeper. She earns €130 a week (net). Net earnings are total earnings after deductions, such as PRSI, superannuation and union fees.

They have no other income, but they have savings of €56,000.

Currently, Joe's pension payment is the maximum State Pension (Non-Contributory) €441.70. This is the maximum personal rate of €266, plus the increase for a qualified adult of €175.70.

Joe and Jean’s total weekly income is currently €571.70.

#### Changes to their circumstances

Joe has been offered some part-time work as a caretaker in a local school. If he takes the job, his net weekly wage will be €260.

Jean is thinking of increasing the number of hours she works. Her new net weekly income would be €206.

Joe wants to know how his State Pension (Non-Contributory) will be affected if he starts work in the local school and Jean increases the number of days she works.

#### Joe and Jean's new assessable means

The table below shows how to calculate Joe and Jean’s new weekly income:

 Step 1: Find Joe and Jean’s total assessable income Joe's assessable income from work (see note 1 below): €60 Add Jean's assessable income from work (see note 2): €6 Add income from savings (see note 3): €16 Total: €82 Step 2: Calculate 50% (half) of Joe and Jean’s total assessable means €82 divided by 2 = €41 (see note 4 below) So, the total assessable weekly means is €41. Step 3: Find Joe’s new weekly rate of State Pension (Non Contributory) As the couple have weekly means of €41, Joe's personal rate of pension changes to €253.30 (see note 5 below). His weekly increase for a qualified adult changes to €167.40.  So, Joe’s new weekly State Pension (Non-Contributory) is €420.90. Step 4: Find the couple’s new total weekly income Joe's State Pension (Non-Contributory): €420.90 Add Joe’s weekly income from work: €260 Add Jean’s weekly income from work: €206 The couple’s new total weekly income will be €886.90.

### Note 1: Joe's assessable income from work

Joe will earn €260 (net) per week. He can earn up to €200 per week from employment without it affecting his State Pension (Non-contributory).

As €200 is not taken into account for the means test, Joe’s assessable income from work is €60.

### Note 2: Jean’s assessable income from work

Jean will earn €206 (net) per week. As a spouse, she can earn up to €200 per week without it affecting Joe’s State Pension (Non-contributory).

As €200 is not taken into account for the means test, Jean's assessable income from work is €6.

### Note 3: Income from savings for a couple

Joe and Jean’s income from savings is calculated as follows:

 First €40,000 Nil Next €20,000 €1 per €1,000 per week Next €20,000 €2 per €1,000 per week Excess €80,000 €4 per €1,000 per week

John and Jean have savings of €56,000. The first €40,000 is not taken into account for the means test, but the remaining €16,000 is taken into account. So, their assessable income from savings is €16.

### Note 4

If you are married, in a civil partnership, or cohabiting, your total means as a couple are halved. Read more about assessing the means of a couple for social assistance payments.

### Note 5

Joe's new personal rate of State Pension (Non-Contributory) is €253.50. He also gets an extra amount or increase of €167.40 for Jean as a qualified adult. See the rates of pension paid after means are assessed.

Page edited: 5 March 2024