State Pension - Means Tested on Private Pension??

[Slippers]

There was a lot of chatter about the state pension and retirement age on RTE Radio 1 over lunch today.

It started a conversation here in my house, which then led to the question is the state pension means tested? I presumed it wasn't but another view given was that you are only eligible for a state pension if your private pension is not sufficient.

Is this correct? I am hoping not.

 

[ClubMan]

State pension (contributory) is based on PRSI contributions and is not means tested. You could have a generous occupational/private pension and still get the contributory pension if you meet the PRSI contribution qualifying criteria.

State Pension (Contributory)

The State Pension (Contributory), previously called the Old Age (Contributory) Pension, is payable to people aged 66 and over who have worked and paid enough social insurance contributions.

www.citizensinformation.ie

State pension (non-contributory) is means tested.

State Pension (Non-Contributory)

The State Pension (Non-Contributory) previously called the Old Age Non-Contributory Pension is a means-tested payment available to people in Ireland aged 66 and over.

www.citizensinformation.ie

 

[The Horseman]

There was a lot of chatter about the state pension and retirement age on RTE Radio 1 over lunch today.

It started a conversation here in my house, which then led to the question is the state pension means tested? I presumed it wasn't but another view given was that you are only eligible for a state pension if your private pension is not sufficient.

Is this correct? I am hoping not.

You will receive a state pension based on your prsi contributions. You may have an income tax liability if your state and private pension exceeds the relevant threshold.

So technically it is not means tested but you could end up paying either 20% tax or more depending on your total income. So in effect the State gives in one hand and takes back in the other.