The one rule to understand
Fair Deal assesses your income and your assets separately. Your pension falls under income — and the rule for income is simple: a single applicant contributes up to 80% of assessable income, and a couple is assessed on 40% of their combined income. So you always keep at least a fifth of your income; the scheme is designed so you're never left with nothing.
Are different pensions treated differently?
This is the question most people have, and the answer is reassuringly simple: no. The HSE treats all of these the same way — as assessable income:
- The State pension (contributory or non-contributory)
- Occupational and public-sector pensions — including for retired teachers, nurses, gardaí and civil servants
- Private pensions and annuities
- Pensions from abroad (a UK, US or other overseas pension)
There is no separate rate and no penalty for having an occupational or public-sector pension. A retired teacher on a public-service pension and a neighbour on the State pension are assessed by the same 80% rule; the only difference in what they pay comes from the amount of income and assets each has, not the type of pension.
Couples: how a pension is shared
If you're married, in a civil partnership, or a qualifying cohabitant, the assessment looks at half the couple's combined means. In practice that means each person's income — including each pension — is pooled and the assessment is based on 40% of the combined income, which protects the partner who stays at home. Our guide for couples covers this in detail.
What counts as pension income
Alongside pensions, "income" for the assessment includes things like earnings, rental income from investment properties, and income from savings and investments. One notable recent change: rental income from renting out your own home while in care is now exempt — see our guide on renting the family home.
Confirm the current figures
The 80% income rule is long-standing and stable, but disregards and thresholds are set by the HSE and can change. Always confirm the current detail on the official HSE financial-assessment page, and use the calculator for a personalised estimate rather than a rule of thumb.
Last reviewed: August 2026.
Frequently asked questions
How much of my pension does Fair Deal take?
Your pension is treated as assessable income. A single applicant contributes up to 80% of assessable income, so you keep at least 20%. For a couple, the assessment is based on 40% of your combined income. The exact figure depends on your full income and assets — use the FairDealWizard calculator for an estimate.
Are occupational or public-sector pensions treated differently from the State pension?
No. The State pension, occupational and public-sector pensions (for retired teachers, nurses, gardaí, civil servants and others), and private pensions are all treated the same way — as assessable income, contributing up to 80%. There is no separate or higher rate for a public-sector or occupational pension.
Is my private pension assessed?
Yes. Private pension income is assessable income and is treated the same as any other pension — up to 80% for a single applicant, or 40% of combined income for a couple.
What about a pension from abroad?
Foreign pensions are also assessed as income. The HSE explicitly includes pensions from abroad in assessable income, so a UK, US or other overseas pension is treated like an Irish one.
How much of my income do I keep?
Because the contribution from income is capped at 80% for a single applicant, you always keep at least 20% of your assessable income. The scheme is designed so you are never left with nothing.