Many retired people look towards the state pension, however, there could be other support out there which may make a real difference. Today is Pension Credit Day of Action, with the Department for Work and Pensions (DWP) using this day to boost uptake of Pension Credit.
The benefit aims to boost the weekly income of the poorest pensioners up to £182.60 for singletons, or £278.70 for a couple.
Latest DWP figures estimate Pension Credit can be worth £3,300 per year for eligible people above state pension age.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Pension Credit boosts the income of the poorest pensioners and yet it remains woefully underclaimed.
“Often, people don’t know what Pension Credit is and there are also several myths that need to be addressed as they stand in the way of people getting what they are entitled to.”
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One key myth when it comes to Pension Credit is that it is not available to individuals who own their own home, but this is not always the case.
Similarly, individuals who do have savings put aside can be entitled to Pension Credit, as having £10,000 or less in savings and investments does not impact entitlement.
However, eligibility is wider than often assumed, and Pension Credit can serve as a real “lifeline” according to experts.
Jenny Holt, Managing Director for Customer Savings and Investments at Standard Life, added: “We welcome this initiative to help people of pension age, and on low incomes, access this crucial but often misunderstood benefit.
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“The DWP estimate up to one million pensioner households who are entitled to Pension Credit do not claim it.
“Official figures highlight the importance of state benefits to certain groups of pensioner households.
“Nearly 80 percent of income comes from benefits, including the state pension, for the least well-off pensioner households, compared to around 15 percent for those in receipt of the highest incomes.
“Pension Credit can be a real lifeline when times are tough.”
The benefit is often described as a “gateway” due to the fact is can offer those who are eligible a wide range of other support measures.
Alternatively, individuals can also apply by phone or by post if that is better suited to them.
The Government has also recently announced it will be supporting pensioners on the lowest incomes even further throughout the cost of living crisis.
Ms Morrissey explained: “The Government’s recent package of measures aimed at helping people deal with rising costs included a £650 payment to people on benefits such as Pension Credit.
“This payment will be split over two instalments -one in July and one later in the Autumn.
“The first instalment will only go to people who were already receiving Pension Credit as of May 25 or those whose claim was still being assessed on that date.
“However, if you successfully claim Pension Credit now then you could qualify for the second payment.
“At a time when inflation is rapidly stoking prices of essentials such as food and energy the extra money is welcome, and it is to be hoped the Chancellor’s announcement has spurred more people to check to see if they are eligible.”
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