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SAMANTHA ASKS:
My siblings and I are going to start financially supporting my mother in the next few months. To give us some assistance, I am hoping we can apply for a state pension for her. However, she has never worked. Would she still qualify for a pension?
CITY PRESS REPLIES:
Any South African, whether they have worked or not, who has reached the retirement age of 60 can apply for a state pension – the SA Social Security Agency (Sassa) Older Person’s Grant.
Your mother would have to undergo a means test to prove financial hardship.
Means test
If you are single, your total monthly income cannot exceed R7 190. Married couples are assessed jointly. So you will need to prove that your combined monthly income is below R14 380.
READ: Money Makeover | When your retirement fund is not enough
Even if you have no income, but your spouse earns R14 380 or more a month, you will not qualify for the old-age grant. You must also disclose any income earned by dependent children (for example, from part-time or piece jobs), which will be counted as part of your monthly income.
And your assets are also taken into account. Single people with assets worth R1 227 600 or more, are not able to claim the old-age grant. Combined assets of married couples cannot exceed R2 455 200.
If you own any property, you must declare this. But if you live in the property, it will not affect the means test, which is based on monthly income. If you and your spouse own a home worth more than R2.45 million, you may be expected to downsize and use the balance to help fund your retirement, instead of relying on the state.
How to apply
Either go to your nearest Sassa office and complete a form in the presence of the agency’s officer or apply online at www.services.sassa.gov.za.
There is no fee payable.
- Your and your spouse’s identity documents;
- Proof of marital status – that is a marriage certificate, spouse’s death certificate or divorce order;
- Proof of income for yourself, your spouse (if married) and any dependent children;
- Proof of your assets, including the value of any property you own; and
- Proof of private pension (if any).
