State pension age is currently set at 66, following changes recently, and will increase again in the coming years, meaning the sum will be further off for some. At present, the full state pension is £176.90 per week, however, what a person actually receives is dependent on National Insurance contributions. Those who are already of state pension age could be entitled to various forms of support which fall outside of the state pension.
Pension Credit is worth £3,000 per year on average, thus illustrating how beneficial the payment could potentially be for Britons.
If someone wishes to find out how much they might get, they can use the Pension Credit calculator – established by the Government to help older people.
All benefits, pensions and allowances are usually paid into an account of a person’s choice. Therefore, if they are eligible for Pension Credit this is how they will receive their money.
To be eligible for Pension Credit, a person must live in England, Scotland or Wales and have reached state pension age.
Those with a partner will be eligible if either:
- They and their partner have both reached state pension age
- One of the couple is receiving Housing Benefits or people over state pension age
Partners include a husband, wife or civil partner as long as the couple live together, or a couple living together as if they are married.
When applying for Pension Credit, income is calculated and this can include the state pension, other pensions, earnings from employment and self-employment as well as most social security benefits.
Those who have £10,000 or less in savings and investments, will not see their Pension Credit impacted.
However, if a person has more than than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if one has £11,000 in savings, this counts as £2 income a week.
Pension Credit is also referred to as a “gateway benefit” as it offers the chance to be eligible for other help, such as a free TV Licence if over the age of 75, help with heating costs and Council Tax Reduction.
The Government has previously urged people to check if they are eligible, stating: “If you get state pension, you should check if you’re entitled to get it topped up by Pension Credit.
“It’s worth checking if you’re entitled, even if you own your own home or have savings.”
People can apply for Pension Credit using the Government’s website, via phone or by post.
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