Please can someone explain pension credit?


Q: ‘I am due to retire soon but I think I might struggle to manage on my State Pension. Someone told me I might be able to claim a Pension Credit – but I don’t know what that is.’

A: Pension Credit is extra money to help you cover your costs if you’re over state pension age and living on a low income. You might be able to get it even if you have other income, savings or assets. Pension Credit comes in two parts: Guarantee Credit and Savings Credit. It’s separate from your State Pension.
Guarantee Credit is intended to top up your weekly income to a guaranteed minimum level – in 2023-24, this is £201.05 if you’re single, or £306.85 if you’re a couple.
Savings Credit is extra money for those who have some savings, or if your income is higher than the basic State Pension.
It’s available to people who reached State Pension age before 6th April 2016. In 2023-24, you could get up to £15.94 extra per week if you’re single, or £17.84 for couples.

There are different eligibility requirements for each of the two parts of Pension Credit. If you’ve reached state pension age, you can claim Guarantee Credit if your weekly income is less than £201.05 if you’re single or £306.85 if you’re a couple. But even if your weekly income is higher than these thresholds, you could still claim Guarantee Credit if you have a severe disability, you’re a carer or you have to pay housing costs, such as a mortgage.
If you reached State Pension age before 6th April 2016 – or, if you’re a couple, one of you did – you might be eligible to claim Savings Credit. There isn’t a savings limit, though more than £10,000 in savings will affect how much you receive.
To claim Pension Credit, you can either claim online on GOV.UK (if you already claim State Pension and there aren’t any children or young people included in your claim) or call the Pension Credit claim line on 0800 99 1234. Lines are open Monday to Friday, 8am to 6pm.
Claiming Pension Credit doesn’t just top up your income – it could help you get other benefits, too, including help with health and housing costs. For more details, contact your local Citizens Advice.

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  1. really surprised at the lack of knowledge, especially so near retirement. but youll have plenty of time to learn when you do retire… but ill warn you.. retirement is boring…


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