Personal Savings and JB

P

paw1

Registered User
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I have personal savings of €60,000 which I have saved very hard for over 32 years of my working life. This money was to be used when I retire as I have no pension. Now the company I work for is talking about making people redundant and someone said that I won't be entitled to anything cos I have money in the bank. Is this true.........
 
No, it's not true. If you are a permanent employee then you will be
entitled to some compensation if made redundant. That amount would
depend on what the company offers along with the statutory amount.

It's irrelevant whether you have money saved or not. How is the company
to know who has savings or not anyhow?
 
Thanks for the quick reply, however I meant would I be entitled to Jobseekers Benefit.
 
As JB is based on your PRSI contributions there is no means test involved, therefore your savings have no impact on the amount you receive. However if you are a married person savings may have an impact on the amount payable to a spouse.
If you are under 55 there may be a waiting period of up to 9 weeks depending on the amount of the redundancy (if over E50.000).
Call in to your local SW office immediately following your redundancy and they will advise you
 
Your savings will not be taken into account while claiming Jobseeker's Benefit, which is what you will be entitled to based on your PRSI contributions. Jobseeker's Allowance is the one that assesses your means (including your savings) and that is paid to those who do not qualify for JS.
 
Thanks for the replies but say the worst comes to the worst and after JB has run out cos now it's only for 12 months is all of my savings taking in to account. This money is my pension that I saved myself because I knew that I wouldn't be able to join a regular pension scheme ( I saved whatever I could, whenever I could) as my wife doesn't work so we will on my weekly wage for €500 so it has taking me all these years to save this amount which is a hugh deal to me.

Now I wonder what it was all for as I could have gone on holidays, weekends away, bought nice clothes and general enjoyed life but I was careful with my money so that we would have some comfort when we got to old age and at least be able to afford to pay bills, heat our house and put food on the table but now if JB runs out and I have to use this money it will be all gone when I get to 65.
 
Your savings will be taken into account when assessing you for Jobseeker's Allowance, but it doesn't necessarily mean that you won't get a penny in JA. Given that your savings are your pension fund, there will probably be some allowances made. Your best option is to visit your local DSFA office and go to the information desk there. They should be able to give you a clearer picture of what will happen.
 
paw1 said:
Thanks for the replies but say the worst comes to the worst and after JB has run out cos now it's only for 12 months is all of my savings taking in to account. This money is my pension that I saved myself because I knew that I wouldn't be able to join a regular pension scheme ( I saved whatever I could, whenever I could) as my wife doesn't work so we will on my weekly wage for €500 so it has taking me all these years to save this amount which is a hugh deal to me.

Now I wonder what it was all for as I could have gone on holidays, weekends away, bought nice clothes and general enjoyed life but I was careful with my money so that we would have some comfort when we got to old age and at least be able to afford to pay bills, heat our house and put food on the table but now if JB runs out and I have to use this money it will be all gone when I get to 65.
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By my calculations, if you have 60k when applying for JA in 12 months , your payment will be reduced by around 50 per week (on current rules). Also if it is compulsory redundancy, there is no disqualification on JB. If voluntary, there may be up to 12 weeks, depending on amount of redundancy paid.
 
Thanks Welfarite,

Are you saying that I will lose €50 per week or I will only get €50 per week
sorry for sounding a bit thick but my head is all over the place what with this impending redundacy.
 
paw1 said:
Thanks Welfarite,

Are you saying that I will lose €50 per week or I will only get €50 per week
sorry for sounding a bit thick but my head is all over the place what with this impending redundacy.
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Lose 50 give or take a fiver. Rough estimate. Also, that's the capital bit of it only. Your spouse's earning will come into play if she is still mworking. TBH, it's useless trying to calc. means at this stage as you don't know what will be the position in twelve months time!
 
Welfarite said:
By my calculations, if you have 60k when applying for JA in 12 months , your payment will be reduced by around 50 per week (on current rules). Also if it is compulsory redundancy, there is no disqualification on JB. If voluntary, there may be up to 12 weeks, depending on amount of redundancy paid.
Click to expand...

Can you explain this calculation?

Can't see where you got 50euro reduction per week from http://www.askaboutmoney.com/showpost.php?p=675279&postcount=10 , would it not be a loss of 110 quid per week?

"You lose 1 euro for next ten K, 2 euro for next 10, 4 euro of balance."

So first 20k disregarded, poster will lose 1 euro per thousand for 20-30k(10quid), 2 euro for 30-40k(20quid) and 4 euro for 40-60k(4x20=80quid?)?
 
gurramok said:
Can you explain this calculation?

Can't see where you got 50euro reduction per week from http://www.askaboutmoney.com/showpost.php?p=675279&postcount=10 , would it not be a loss of 110 quid per week?

"You lose 1 euro for next ten K, 2 euro for next 10, 4 euro of balance."

So first 20k disregarded, poster will lose 1 euro per thousand for 20-30k(10quid), 2 euro for 30-40k(20quid) and 4 euro for 40-60k(4x20=80quid?)?
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Yep, miscalculated, I think! Sorry, paw1, It's worse than I thought. Maths never my strong subject!
 
Sorry for your trouble. Very unfair position to be in. Would the Social Welfare actually know that a person has savings, ie access to Bank Account's or is it up to the individual to declare it?

Just thinking out loud - if you were to invest those savings in a Pension Fund - cash based - not equity, so when the time came around you did not actually have any savings - would that make a difference? Or could it still be classed as savings. When the time comes for you to retire, will you be entitled to the contributory or non contributory pension.

I can see why you are cheesed off, having tried to look after your financial future by saving out of your NET INCOME when in reality you would have been better blowing it all on a good time and being in the same position you are in now.
 
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