The Fair Deal says the first €36000 is excluded from assessment for a single person. Does this mean that once the person's savings say €60,000 start depleting by 7.5% per year, once the person reaches 36,000 the Fair Deal won't take any more savings from them?
Only if you ask for a financial review, it does not happen automatically. You can do this every 12 months. I suspect there are many out there paying 7.5% on savings that they no longer have.