What are Pension Credits?
Pension Credits are a supplement to the Basic State Pension which top up the pension to give extra income to those who qualify.
The full Basic State Pension in the 2010/11 tax year is £97.65 per week for a single person and £156.15 per week for a couple.
The average Pension Credit award is around £55 per week on top of the Basic State Pension, according to official government figures. This general Pension Credit payment is known as Guarantee Credit.
Will the state pension give you enough of an income for a comfortable retirement? Use our pension calculator to work it out
Who qualifies for Pension Credits?
Pension Credits can be applied for by those who have a total weekly income of less than £132.60 per week for a single person and £202.40 per week for a couple. For those who are 65 or over, Pension Credit can be available if income is less than £184 per week for a single person, and £270 per week for a couple.
Pension Credits are means-tested, and so the payment varies from person to person. These amounts may be more if you are a carer, if you have a severe disability, or if you have extra housing costs, such as a mortgage.
Although Pension Credits are means-tested, they can still be available to those who have some savings, a second pension, or who own their own home.
In addition to these Guarantee Credit payments, the other type of Pension Credits are Savings Credits.
There are many options, and the area of pension credits is a confusing one. Ensure you have the best measures in place for your retirement by speaking to one of our qualified retirement planning advisers.
Call 0800 678 5929, or we can call you back when you submit a pension enquiry
Savings Credits
A smaller supplement, in addition to Pension Credits, are Savings Credits, which are available only to those who are 65 or over. In the case of couples, at least one must be 65 or over to receive the Savings Credit. The Savings Credit can be up to £20.52 a week if you are single, or £27.09 a week if you have a partner.
If you need any help with Pension Credits please do not hesitate to contact us on 0800 678 5929
