Top Up Your Pension with Pension Credit
When it comes to retirement, a little extra money can go a long way. It is important to ensure you are receiving all of the income you are entitled to. One of the extra top ups you may be entitled to is Pension Credit, a weekly benefit to help boost your pension pot.
The Department of Work and Pensions (DWP) has recently reported that hundreds of thousands of pensioners are not taking advantage of Pension Credit with money sitting unclaimed, and are urging us to help spread the word of this benefit to our family members, friends, and neighbours who may be eligible.
What is Pension Credit?
Pension Credit is a means-tested benefit separate from your State Pension. It can give you extra money if you are over State Pension Age and on low income.
Your income includes:
- State Pension
- Other pensions you may have
- Earnings from employment and self-employment
- Most social security benefits
Pension Credit comes in 2 parts: Guarantee Credit and Savings Credit. You might be eligible for one or both parts.
Guarantee Credit tops up your weekly income to a guaranteed minimum level. This level is currently:
- £218.15 if you're single
- £332.95 if you're a couple.
Meanwhile, Savings Credit is extra money if you've got some savings or if your income is higher than the basic State Pension. It's available to people who reached State Pension age before 6 April 2016. You could get up to:
- £17.01 extra per week if you're single
- £19.04 extra per week if you're a couple.
You may get extra amounts if you have other responsibilities or costs.
Am I eligible?
You can use the Pension Credit calculator to check your eligibility and get an estimate of how much you could get.
When you apply for Pension Credit you will have to provide information such as income, any savings and investments you have, your housing costs and benefits you receive.
Even if you think you may not be entitled to much Pension Credit, it could still be worth applying as even a small amount can provide access to other benefits. If you get Pension Credit, you can usually get other benefits like Winter Fuel Payments or a Council Tax Reduction.
This is particularly important this year as the rules for Winter Fuel Payments have changed. From winter 2024 you’ll now only get the Winter Fuel Payment if you or your partner get certain benefits, like Pension Credit.
For more information visit https://www.gov.uk/pension-credit
