What you need to Know about Pension Credit UKPension credit UK is available for those who have already reached the minimum qualifying age. It has two categories:
Its calculation is based on how income support is determined. If your income is less than the “appropriate minimum guarantee”, then you can qualify for guarantee credit.
It is the additional income given to you if you have a retirement plan. It is like a reward system for your capability to generate funds from savings, pensions, and earnings other than what you have in your basic pension.
Who can get a pension credit UK?
You can avail the two categories of pension credit UK if you pass the requirements.
UK residents who have already reached the minimum qualifying age can get a Guarantee Credit, a form of pension credit for low wage earners, providing:
- Your weekly wages is less than £142.70 (for singles)
- Your combined weekly wages is less than £217.90 (for couples)
For individuals who have severe disabilities, caring responsibilities, or special housing costs, they can get more pension credit.
UK residents who are aged 65 and above can avail a Savings Credit if:
- Your weekly fund is between £111.80 and £189.05 (for singles)
- Your combined weekly fund is between £178.35 and £277.23 (for couples)
What is considered as funds?
Here is a list of what is considered as funds for your pension credit UK:
- Weekly income of £1 for every £500 worth of capital you have for more than £10,000 (capital refers to properties except your main residence as well as investments and savings)
- State Pension
- Private and occupational pensions
- Working tax credit
- Social security benefits
Funds that are excluded:
- Disability Allowance
- War Widow’s Supplementary Pension
- Christmas Bonus
- Attendance Allowance
- Exceptionally Severe Disablement Allowance
What are the effects of pension credit UK on other benefits?
This can also entitle you to:
- Mortgage interest payments relief
- Housing aids
- Funeral payment
- Cold weather payment
- Winter fuel payment
- Budgeting loan
- Crisis loan
- Community care grant
- Sure start maternity grant
When do I become eligible for pension credit UK?
- If you want to claim your pension credit UK, you need to apply for up to four months before the date you want to avail it. Use the State Pension age calculator to determine if you can already qualify for this.
- If you want your pension credit to begin on a previous or future date, you need to notify The Pension Service.
- If you are over 65 years old, you may be entitled to an award that can last for five years, known as the assessed income period (AIP). Your state and private pension will be assessed during this time but you do not to report any changes in your income or savings.
- If you are over 75 years old, your AIP can be indefinite
- If you are 80 years old, you do not have to undergo an AIP
For a more comprehensive study on its benefits you can read this page.
For more information about pension credit UK, contact us and talk to our reputed financial advisor. We are here to give you the best advice based on your particular situation.