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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 tops up weekly income to a minimum level. In 2026/27, the standard minimum guarantee is £238.00 for a single person and £363.25 for a couple. Your amount can differ because of other income and circumstances.

Savings Credit

Savings Credit is only available to people who reached State Pension age before 6 April 2016 and meet the other rules. In 2026/27, it can provide up to £17.96 a week for a single person or £20.10 for a couple.

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

Many eligible people do not claim Pension Credit. Because entitlement can exist even when you have savings, a pension or your own home, use the official Pension Credit calculator or make a claim if you may qualify.

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.

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SOME IMPORTANT THINGS YOU SHOULD KNOW
Pensions are long terms investments. It’s important that you know the value of your investment could go up as well as down. You could get back less than you put in. Past performance is not necessarily a guide to the future and pension investing is not intended to be a short-term option. Penny does not provide financial advice so please be sure that this investment is right for you.

Your current pension might have special benefits that will be lost if you transfer to Penny. These special benefits include: Guaranteed Annuity Rate (GAR), Guaranteed Bonus Rate (GBR), Guaranteed Minimum Pension (GMP) and Protected Tax Free Cash (PFTC) over 25%. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

Your current provider might charge you a transfer-fee to transfer your pension to Penny. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

You should consider the charges and benefits before transferring your old pensions to your new plan, and consider whether the risk and reward profile of the investments offered matches your needs. It may be that your current provider has lower fees than Penny - where this is the case, we recommend that you carefully consider whether to transfer your pension to Penny, as you may be better off not transferring in these cases.

If you are in any doubt about proceeding you should contact a financial adviser.
© Copyright 2026 Penny Technology Limited. Company registration: 11999643. FCA Reference Number: 931299.
PENSION
FAQs
FUNDS
FEES
iOS APP
ANDROID APP
COMPANY
ABOUT
FCA AUTHORISED
HELP & SUPPORT
TRANSFERS DUE DILIGENCE
RESOURCES
Articles
Scam Smart
MoneyHelper
TERMS & CONDITIONS
PRIVACY POLICY
SOCIAL
Linkedin
instagram
SOME IMPORTANT THINGS YOU SHOULD KNOW
Pensions are long terms investments. It’s important that you know the value of your investment could go up as well as down. You could get back less than you put in. Past performance is not necessarily a guide to the future and pension investing is not intended to be a short-term option. Penny does not provide financial advice so please be sure that this investment is right for you.

Your current pension might have special benefits that will be lost if you transfer to Penny. These special benefits include: Guaranteed Annuity Rate (GAR), Guaranteed Bonus Rate (GBR), Guaranteed Minimum Pension (GMP) and Protected Tax Free Cash (PFTC) over 25%. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

Your current provider might charge you a transfer-fee to transfer your pension to Penny. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

You should consider the charges and benefits before transferring your old pensions to your new plan, and consider whether the risk and reward profile of the investments offered matches your needs. It may be that your current provider has lower fees than Penny - where this is the case, we recommend that you carefully consider whether to transfer your pension to Penny, as you may be better off not transferring in these cases.

If you are in any doubt about proceeding you should contact a financial adviser.
© Copyright 2025 Penny Technology Limited. Company registration: 11999643. FCA Reference Number: 931299.