The recent budget has highlighted an area which most of us have perhaps overlooked! Are you aware of the reduced entitlement to the State Widows/Widowers Pension?

I thought not! Let me explain...........

Currently a new widow or widower can qualify for the State Widows/Widowers Pension of up to €193.50pw + €29.80pw for each child, if they or their deceased spouse had paid at least 3 years PRSI contributions.

So, for example a young widow with two young children could currently receive a State Widows Pension of up to €253.10pw or €13,161pa, following the death of their spouse.

However with effect from July 2013, new widows or widowers (or their deceased spouse) will have to have paid at least 10 years PRSI contributions in order to qualify for the pension.

This will mean that young married couples may have far less protection from the State, should one of them die. Those affected will therefore have a greater need for life assurance protection.

In real terms the loss of the State Widows/Widowers Pension of up to €193.50pw + €29.80pw for two children is equivalent to a capital loss of up to €130,000 over 20 years and up to €260,000 over 40 years.

The message is very clear PROTECT THOSE CLOSE TO YOU!

Check out our Protection page for more information or call Alasdair on 01 810 1912 or email info@agsfinancial.ie