Case study: Working and claiming a State Pension (Non-Contributory)
Working and claiming a State Pension (Non-Contributory)
This case study shows the effect of work on a State Pension (Non-Contributory), using 2024 rates
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:
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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 |
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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. |
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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. |
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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.