Dear Miriam,

Since the start of this year, my husband and I have managed to save a considerable amount of our pension. He is on a contributory OAP and I am on a non-contributory. It has come about because our lifestyle has changed massively due to COVID-19. No mass or visits to pubs or daily papers. I now feel we are being overpaid. How can I solve this easily? Please help as it worries me a great deal.

Regular Reader

Dear Regular Reader,

Thank you for your letter. While COVID-19 has certainly caused a lot of hardship for a lot of people financially (eg those who have unfortunately lost their jobs), I know that there are many others who find that they are not spending as much as they used to, and have been able to build up some savings for a “rainy day”. So just as a starting point, you are not alone in finding yourself with some extra income at this time.

I’m sure that what you are getting is the very least that you deserve

I am obviously not a financial advisor, but I am quite sure that whatever yourself and your husband are receiving through the pension has been well earned as a result of your hard work and sacrifices down through the years. And hand on heart, I don’t believe that you are being “overpaid”. On the contrary, I’m sure that what you are getting is the very least that you deserve. So please, I would ask you not to worry about that. This is your basic entitlement after a lifetime of giving so much to the state and society. How that modest pension is spent- or not spent at the present moment- is your concern only, and you certainly should not feel any worry about the fact that you are living within your means due to the extraordinary circumstances that we find ourselves in right now.

I would really look at this time as an opportunity to create a nest egg, or a financial cushion for when life returns to normal

If you do feel that you have some extra income that you would like to do something positive with, it might be a nice idea to pick a charity that is close to your heart and make a small donation. But to be honest, I would really look at this time as an opportunity to create a nest egg, or a financial cushion for when life returns to normal. Because here is the thing; COVID-19 will not go on forever (or at least that is what I try to tell myself anyway!) There will come a day when life will return to something like normality, and along with it, all the expenses that go with that; expected and unexpected. The last thing you would want is to find yourself caught short financially if something happened with the house or the car etc. I think that could leave you very vulnerable and would be a much greater source of concern.

Please believe me when I say there is no reason in the wide, earthly world for you to feel any fear that you are being “overpaid”

Regular reader, I don’t mean to dismiss your worry. It’s obvious to me from reading your letter that you are a sensitive and caring person who thinks about others and wants to always do the right thing. But sometimes, these very admirable traits mean that we can become anxious and then fixate on things that we really do not need to worry about. Please believe me when I say there is no reason in the wide, earthly world for you to feel any fear that you are being “overpaid”. If you do find that such thoughts get on top of you though, it might be helpful to talk to somebody who might be able to be challenge and reframe your thinking; for example, your GP might be able to refer you to somebody who deals with anxiety. It is really so common and there is plenty of help available, and I can highly recommend investing in that sort of support.

I hope that this is in some way helpful and wish you and your husband all the best. Take care of yourself and stay safe and well through the winter. Thanks again for getting in touch.

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