SA Government pension

[Kosmik]

Hey chaps,

So my old lady went on pension a while ago and we've been chatting on how she's doing etc. Bit of history, she only had a permanent job in her 50's so a relatively small amount was put away for pension. My father passed away years ago and left the house etc to her, which was sold and cashedup to supplement her pension. So, monthly she gets money from government pension, work pension and interest on left over money. These are however very small amounts:

ie: Government - R600 pm
Work Pension - R350 pm
Interest - 8% pa on around R600k

In total I think it amounts to something like R1500pm. Now the government one is apparently restricted and they won't give more as she has the other sources of income. Surely this is a bit unfair? So because she has the forethought to save some money and invest it into living, she's penalized on the government grant? Anyone else had these experiences?

 

[pinball wizard]

Is it a government pension, or a government grant? You use both terms, and they are different animals.

 

[Kosmik]

Is it a government pension, or a government grant? You use both terms, and they are different animals.

According to them it's the same thing.

http://www.gov.za/services/social-benefits-retirement-and-old-age/old-age-pension

About the older persons grant

You can get a grant to see you through your old age. An older persons grant is paid to people who are 60 years or older. This grant used to be called the old age pension.

 

[ice_cubes]

They pay according to the means test. her downfall was disclosing all her other sources of income, hence the cap

 

[Kosmik]

They pay according to the means test. her downfall was disclosing all her other sources of income, hence the cap

Any idea where this is broken down? I can't find a calculator anywhere.

 

[ice_cubes]

They removed the online calculator in 2007. You are now required to disclose on the actual application form & they do their own calculations & you just get informed of the outcome.

Best solution is to not disclose other income at all...and in her situation , It would be best to approach the sassa offices for a new assessment of affordability

 

[Dan C]

Interest - 8% pa on around R600k

This should be R4k pm I think

 

[Kosmik]

This should be R4k pm I think

Yah, you're right, I had the figures wrong, she's getting just under R4kpm. I also see that the government was supposed to scrap the means test from 2016 ( as it did exactly what she complained about, penalize her for saving ) according to Pravin but they've postphoned it twice now. Basically, if you qualify for the grant, you get the full grant. Will just have to keep an eye on it.

 

[marco79]

They pay according to the means test. her downfall was disclosing all her other sources of income, hence the cap

My father is being disqualified because my mother is earning a salary. When he applied for the government grant they wanted bank statements for both him and my mother.

 

[supersunbird]

This should be R4k pm I think

I concur. The money is earning low interest wherever it is.

R600 000 in the Coronation Money Market fund should give her around R3400 per month.

 

[Kosmik]

I concur. The money is earning low interest wherever it is.

R600 000 in the Coronation Money Market fund should give her around R3400 per month.

Apparently, she's only getting 7% because she "fixed" her fixed deposit rate when she did it. Luckily up for review in September, told her we will shop around to find a much better rate.

 

[ice_cubes]

My father is being disqualified because my mother is earning a salary. When he applied for the government grant they wanted bank statements for both him and my mother.

yet another reason to have more than one bank account...

 

[*Medusa*]

yet another reason to have more than one bank account...

+1

 

[thehuman]

i think they can see all your bank accounts tho

 

[ice_cubes]

really?

 

[supersunbird]

really?

FICA...

 

[ice_cubes]

There's always a way around the system