Some state pensioners are on a low income, and as a result they will be entitled to extra support. This is made available through Pension Credit – designed for older Britons who have less money.
It tops up weekly income to £182.60 for singletons and joint weekly income to £278.70 for those in a relationship.
This top up is commonly known as Guarantee Credit, and is the main part of Pension Credit.
However, aside from this, the Government has drawn Britons’ attention to a key part of Pension Credit called Savings Credit.
It is intended to provide pensioners with extra money if they have a modest income or savings.
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This could be, for example, a personal or workplace pension.
Savings Credit acknowledges the hard work a person has done to save money, but recognises an income top up may still be needed.
The rates are different depending on a person’s circumstances.
For example, individuals will get up to £14.48 per week if they are a singleton.
Those who have a partner will get slightly more, at up to £16.20 a week.
Importantly, people may still get some Savings Credit, even if they do not get the Guarantee Credit part of Pension Credit.
The amount of Pension Credit someone is eligible for will vary from person to person.
As such, individuals are encouraged to use the Pension Credit calculator to work out how much they could get.
It is available through the Government website, and designed to be a straightforward process.
Individuals will need details of:
- Savings and investments
- Earnings, benefits and pensions
People cannot use the calculator if they or their partner is deferring their state pension, is self employed or owns more than one property.
Similarly, people cannot use the calculator if they have housing costs which are neither mortgage repayments nor rent covered by Housing Benefit.
An alternative to the online tool include calling the Pension Service helpline on 0800 731 0469.
All Savings Credit payments are usually paid into an account of a person’s choice, for example a bank account.
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