Pensioners

Ray and Fiona are retired, in their 70s and living in Dublin.

Ray had an occupational pension of €30,000 and receives dividends of €8,000 per annum. Fiona is in receipt of an occupational pension of €8,000 per annum.

As Ray and Fiona’s family have all moved out of home, they are thinking of downsizing and moving back to Ray’s hometown in Co. Cavan. They had seen a second-hand house that they like on the market for €300,000. They knew that due to its size and price level they would incur a 5 per cent stamp-duty cost. They were therefore hoping that in this year’s Budget the Minister would remove stamp duty on the purchase of all types of residential properties for non first-time buyer owner-occupiers buying homes costing less than €320,000, and are disappointed that this had not happened. Ray and Fiona had intended to place the equity released from the sale of their current home on deposit in case they need to pay for nursing care in the future, but if they go ahead with their plans, the stamp duty cost will reduce this by €15,000.

They are happy that the Minister had continued the trend set in recent years and increased the social welfare old-age pension rates.

As a result of the Budget, they will be better off in 2007 by €194 per month.