What is Pension Credit?

Pension Credit is a benefit provided by the government to give extra financial help to retirees who are on a low income. If you have already reached State Pension age, Pension Credit could substantially boost your weekly income, making life a bit easier.

Two Types of Pension Credit

Pension Credit consists of two parts: Guarantee Credit and Savings Credit.

Guarantee Credit

Guarantee Credit is the primary element of Pension Credit. It supplements your weekly income to a minimum amount determined by the government. For the year 2024/25, the minimum income level is set at £218.15 for singles and £332.95 for couples.

Savings Credit

This is for those who reached State Pension age before April 2016 and have some savings. This part of Pension Credit can provide up to £17.01 a week for singles and £19.04 for couples, helping those who have saved for their retirement get a little extra assistance.

Broad Eligibility

You might be eligible for Pension Credit even if you have other income, savings, a pension, or own your own home.

Additional Benefits

Claiming Pension Credit can open the door to a range of other benefits. These include Housing Benefit, Support for Mortgage Interest, a free TV licence (if you’re aged 75 or over), and help with various other health and housing costs.

Easy to Claim

It takes about 20 minutes to apply for Pension Credit and it could make a significant difference in your financial comfort.

Don't Miss Out

Surprisingly, about 880,000 households eligible for Pension Credit do not claim it. Some retirees don't realize they could be entitled to this benefit. Checking your eligibility and making a claim could provide a much-needed boost to your retirement finances.

Applying

When applying for Pension Credit, include your partner if you have one, and your incomes will be assessed together. Only your savings over £10,000 affect the amount of Pension Credit you might receive, so it's worth applying even if you have some savings.

Conclusion

Pension Credit can be a valuable addition to your financial resources in retirement, offering not just additional income but eligibility for other significant benefits. If your weekly income is below the thresholds mentioned, consider applying. A few minutes could provide a helpful uplift to your quality of life in retirement.