How much money can you have in the bank before you loose your pension? 2023-2024

How much money can you have in the bank before you loose your pension? 2023-2024

In South Africa, eligibility for the state pension is subject to an income and asset means test. This means that individuals who have income or assets above a certain threshold may not be eligible for the full pension amount, or may not be eligible for a pension at all. The asset threshold for the means test is currently set at R1,286,000, which includes all assets such as property, investments, savings, and other possessions.

• However, it is important to note that not all assets are considered in the means test. Certain assets are excluded, such as the primary residence of the pensioner, and a vehicle that is used for transport. Additionally, the means test only considers assets that generate income, such as rental property or investments that pay dividends. Assets that do not generate income, such as personal possessions, are not included in the means test.
• It is also important to note that the means test applies to both single and married pensioners. In the case of married pensioners, the means test is applied to the combined assets of the couple.
• If a pensioner's assets exceed the threshold, the pension amount may be reduced, or the pensioner may not be eligible for a pension at all. The reduction in pension amount is calculated based on a formula that takes into account the value of the excess assets. The pensioner may also be required to pay back any pension amounts that were received incorrectly due to the excess assets.
• It is important for individuals to plan for their retirement and consider the means test when making financial decisions. For instance, individuals may consider ways to reduce their assets before applying for a pension, such as gifting assets to family members or investing in assets that are excluded from the means test.

Overall, while the asset threshold for the means test in South Africa is currently set at R1,286,000, the means test is complex and applies to both income and assets. It is important for individuals to seek advice and plan carefully to ensure that they receive the appropriate support in their golden years.

SOCIAL GRANTS

• Care Dependency Grant
  Child Support Grant
  Disability Grant
  Foster Child Grant
  Grant-In-Aid
  Older Persons Grant
  Social Relief of Distress
  War Veterans Grant

Visit the SRD website at

• • https://srd.sassa.gov.za

• Email: srd@sassa.gov.za
• USSD: *134*7737#

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