Perks of pension time are worth securing

A broad range of incentives, from retail discounts to free television licences, are available to the older generation, writes Fiona Reddan

WHILE ILL-HEALTH is more readily associated with aging, getting older does also have an upside, with a broad range of incentives - from retail discounts to free television licences - available to the older generation.

The Government's forthcoming Budget is unlikely to add much to existing social welfare payments.

The real value of some of the benefits available may even be reduced - such as the proposed discontinuation of a free medical card for all those over the age of 70, regardless of means - but there are still a wide range of incentives available. In addition, the older you get, the more you are entitled to.

According to the Department of Social Affairs, social welfare benefits are worth an additional 13 per cent-plus of pension income, so pensioners need to keep informed and up to date about what they're entitled to.

For all but a select few, income becomes more scarce in retirement. Many people have little to fall back on except the State pension, and that is expressly designed to provide a subsistence level of income. It was always envisaged as a safety net for those who had not made other pension provision or had other savings and assets to fall back on. For people in that position, every little helps, but thousands of people are failing to apply for benefits to which they are fully entitled. Even then, some of those who do chase their entitlement leave it very late to ensure a smooth transition from work to retirement.

Although certain social welfare payments are means-tested, such as the Warmer Homes Scheme, others, including the Free Travel Pass and the Household Benefits Package, are available to all citizens regardless of income once they reach a certain age. This will come as news to a large number of people, especially those who have been self-employed.

Moreover, it isn't just the State that is working to help defray the cost of living in retirement. Savvy customers can also benefit from a range of incentives on offer to those over the age of 60 from companies in the private sector. These include, significantly, free banking, as well as more occasional requirements such as discounted concert tickets and cut price eyeglasses. Some stores even offer pensioner discounts on certain days of the week, generally the quieter mid-week hours.

But what are the main benefits that everyone concerned should be aware of?

Household Benefits Package

This package includes allowances for electricity, gas and the telephone. If you are aged 70 or over you qualify, regardless of your income or who lives with you. The scheme may also be available to people aged 66 and over who receive certain social welfare payments or whose income is below certain limits.

The package includes:

• Electricity Allowance: the allowance covers normal standing charges and up to 2,400 units of electricity each year.

• Natural Gas Allowance: from August 1st of this year, you will get €57 deducted from each gas bill, for gas used during the summer months, with the Natural Gas Allowance. You will also get €123 deducted from each gas bill for gas used during the winter months. If you don't use your full allowance, you can carry up to €150 to your next bill. For welfare purposes, the summer months are from June to November. The winter months are from December to May. The maximum allowance is €540 per year.

• Bottled Gas Refill Allowance: this allowance is only available to people who do not have an electricity or natural gas supply.

• Telephone Allowance: this allowance is a payment towards a mobile phone or landline phone bill. The value of the allowance is: €21.40 plus VAT (€25.90 including VAT) if you are billed monthly, or €42.80 plus VAT (€51.80 including VAT) if you have a landline phone and are billed every two months.

• Free Television Licence: once you qualify for the Household Benefits Package, you become eligible for a free television licence from the next renewal date of your television licence.

Living alone allowance

A supplementary payment of €7.70 for people on social welfare pensions is available for people who are living alone. It is also available to people under the age of 66 who receive certain other payments from the Department of Social and Family Affairs.

Aged 80 increase

Pensioners reaching the age of 80 automatically receive a rise of €10 a week in their State pension.

Increase for Living on a Specified Island

An increase in the weekly payment of certain sums is also granted to people who are aged 66 or over and living on a specified island off the coast of Ireland. The objective of the scheme is to compensate for the additional costs of living on these islands when compared to living on the mainland. Islands covered by the scheme include Inishboffin, the Aran Islands and Sherkin Island.

Free Travel

The free travel scheme entitles everyone over the age of 66 to receive a free travel pass, which enables the holder to free travel at any time on bus, road, rail and Dart services operated by Bus Átha Cliath, Bus Éireann, Iarnród Éireann, Luas services, the Aran Islands ferry service and on certain private services that have opted into the scheme.

Last year the scheme was extended to include public transport services in Northern Ireland.

In addition, the free travel pass can be used on any of the 34 schemes under the Rural Transport Initiative. People who are entitled to free travel are also entitled to have their spouse/partner travel free with them or may be entitled to a companion pass on medical grounds.

Additional social welfare benefits

Senior citizens may also be eligible for additional means-tested payments:

- National Fuel Scheme

- Carer's payment

- Housing aid for older people

- Warmer Homes Scheme.

DIRT exemption

Savers over 65 are exempt from paying Deposit Interest Retention Tax (DIRT) of 21 per cent on their deposits, provided they have an income below the income-tax threshold. In 2008, the threshold for a single person is €20,000 and €40,000 for married couples.

Free banking

Most banks offer free or incentivised banking for those aged 60 and over. For example, customers of AIB can avail of the 60-Plus offer, which entitles the customer to incentives such as banking free of maintenance and transaction fees; the purchase and sale of foreign currency notes; the purchase of foreign currency cheques and euro international cheques and the sale of domestic euro, international euro and foreign currency bank drafts; and a 20 per cent discount on commission above the minimum €100 charge when conducting share dealing through an AIB branch.

Medical care

The over-70s can benefit from a free medical card, regardless of means, provided that they are normally resident in Ireland. This medical card, which is not means tested, covers the applicant only, not dependent. The card entitles the holder to free GP services, prescribed drugs and medicines, in-patient public hospital services, out-patient services, dental, optical and aural services and medical appliances.

Although a plan by the Health Service Executive to extend the free flu vaccine to the over-50s has been postponed, it is still available free of charge to the over-65s.

Free passport

Persons aged 65 and over can get a new 10-year passport for free, instead of at the regular €75 charge.