Pension Credit: What Is It and How Do You Get One?
Pension credits are a type of benefit for those who have reached the qualifying age (65) and have a low income. There are two different parts to these particular credits. There is the Savings Pension Credit and the Guarantee Pension Credit.
The extra cash is a real boost for those on a low fixed income or solely collecting benefits.
Depending on your specific situation, you might be eligible for both credits or you could only get one.
- The Guarantee Credit boosts your weekly income if your income falls in the low income range, which is £155.60 for single individuals and £237.55 for a couple.
- The Savings Pension Credit is an added payment that rewards individuals who have taken the time to prepare for retirement by having some income or a small savings account.
You are able to claim the Pension Credit whether you are working or not. You don’t have to have paid in anything to the insurance to claim the benefit, which is good for those who are looking for a way to supplement their income.
There are a number of different rules that come into play when it comes to getting these credits. Take a look at the following:
- For a woman to claim the Guarantee Pension Credit, she has to be the minimum state pension age.
- Men are able to claim the Guarantee Pension Credit when they reach the state pension age for a woman who was born on the same day and year as they are.
- Men and women aged 65 or older are able to claim the Savings Pension Credit.
Can I get the pension credit?
If you meet the age and income rules, you could be eligible for the Guaranteed Pension Credit. Women are only able to get this once they have met the minimum state pension age. Men are able to get it when they reach the state age of a woman with the same birthday as them.
Provided you meet the age rules, it doesn’t matter what age your partner is. However, that will be changing in the future when the Universal Credit comes into play. When that happens, both individuals have to be at pension age before getting the credit.
The savings credit is for those who have a certain amount of money in savings, pensions, investments and earnings and are at least 65 years of age.
How much credit can I get?
The Guaranteed Pension Credit takes your weekly income and compares it to the amount set forth by the government. The amounts per week are:
- £155.60 for individuals
- £237.55 for couples
Amounts are going to vary based on whether you are eligible for extra amounts or not. Someone with a disability or a certain career might receive more.
The Savings Pension Credit lets you make as much as:
- £133.82 for individuals
- £212.97 for couples
If your income is higher, you might be eligible for some form of credit. The most you can receive is £13.07 for individuals and £14.75 for couples. There is also a Christmas Bonus every year you might qualify for as well.
Credits are typically deposited into your bank account or post office account. If you don’t have one of these accounts, they can be paid by Simple Payment. Benefits are typically received every four weeks.