How do savings affect a pension?

[HappyFace]

My mother in law turns 60 in September and I understand she will be entitled to a state pension of �53 a week. She has not worked for 9 years. However, she has �50K in a savings account for which she is currently receiving gross interest. Will the interest she receives affect the amount of pension she is entitled to? What is the annual amount you can earn before any tax is dedeucted (i.e. what is the married woman's tax allowance?)

[Loosehead]

The state pension is affected, interestingly not by how much is contributed but by how many years the minimum contribution level is maintained. Savings and other investments, wealth etc are irrelevant to the state pension, total income however is relevant to taxation. After retirement all income is added up and taxed according to the rules, I don't know the exact figure but I believe pensoners can earn something like �5500 before tax. This is, like the rest of us income from all sources, ie wages, interest, annuity income, state pension etc.