You’re a married couple who are both aged 76. You both worked all your lives and retired in 2006. You each get a private pension of €10,000 a year. You also both qualify for the full State contributory pension. You have two adult children who no longer live at home. You own your own home but this is your only asset.
As a couple, you will be €4,442 better off under Budget 2018 than you were in 2006, according to Jane Devlin, senior manager with PWC. Your total income from the State and private pension will come to €43,245 next year after tax — compared to €38,823 at the height of the boom. That means you’re €85 a week better off under Budget 2018 than you were in 2006.
The main reason for the jump in your after-tax income are the increases in the State pension over the last few years. “There has been a considerable increase in the weekly State Pension since 2006,” said Devlin. “Under Budget 2018, this couple will benefit from the €5 weekly increase in the State pension from the last week of March 2018.”