The state pension is something that many people rely on during their retirement after reaching retirement age. And, for some people, the tax-free pension credit can make life easier in their retirement years. However, not everyone will be entitled to this particular payment because the pension credit is an income-linked benefit. It is made up of two parts, called Guarantee Credit and Savings Credit.
Guarantee credit supplements a person’s weekly income.
For a single person to be eligible, that figure must be less than £ 167.25, while a couple’s weekly income must be less than £ 255.25.
The Guarantee Credit is an additional amount that will ensure that your weekly income then meets these numbers, depending on the circumstances that apply to you.
Meanwhile, the savings credit is an additional payment available to those who are eligible and have saved money for their retirement, for example through a pension.
Currently, a single eligible person will be paid up to £ 13.73 per week via the savings credit.
Couples eligible for the savings credit will receive up to £ 15.35 per week.
Are you eligible for the pension credit?
To qualify for this income-related benefit, you must live in England, Scotland or Wales.
In addition, you or your partner must have reached the age of eligibility for the pension credit – which the government website explains as the state retirement age.
You have to live with your partner, be it your husband, wife, civil partner, or someone else you live with as if you were married.
The pension credit changes from May 2019
Eligibility for pension credit will change on May 15, 2019.
From that date, if you are in a couple, you will only be able to start benefiting from the pension credit if one of the following criteria applies:
- You and your partner have both reached the age of eligibility for pension credit
- One of yours has reached the pensionable age and is claiming housing allowance for you as a couple
If you do not already get a pension credit on May 14, 2019, you may be able to back date your claim and you may still be eligible for a pension credit.
If you are requesting that your claim be backdated to May 14 or earlier, you must submit your claim by August 13, 2019.
If you already benefit from a pension credit, after May 15, 2019, you will continue to do so, unless your rights cease, if your situation changes.
How much is the full state pension currently?