State pension: what is the pension credit? How to apply for a savings loan

The amount of money state pension claimants can get varies depending on various things. But for some people, the government will give them some extra money. This works out to £14.99 per week and is a type of pension credit. But, to receive this extra money, eligible people must apply for it.

What is the pension credit?

Pension credit is an income-tested benefit and not something you pay tax on.

It is made up of two distinct parts, called guarantee credit and savings credit.

The first serves as a weekly income supplement, if this does not reach £163 for a single person or £248.80 for a couple.

As for the savings credit, it is an additional payment, which can be claimed by those who have saved part of their own money for their retirement.

This latter type of pension credit can enable a single person to claim up to an additional £13.40 per week.

Meanwhile, eligible couples could get up to £14.99 a week through savings credit.

Who is entitled to the pension credit?

As well as having an income of less than £163 per week, to qualify for collateral credit you must meet two conditions.

You must be resident in England, Scotland or Wales and you or your partner must have reached the age of eligibility for pension credit.

For the savings loan, you or your partner must be at least 65 years old.

And, if you reached legal retirement age on or after April 6, 2016, you may not be eligible for the savings credit.

However, if the following two points apply, you may have the right to make a complaint.

This is only if you are in a relationship and one of you has reached the legal retirement age before the date mentioned above.

This is added if you benefited from a savings credit until April 6, 2016 and you have not ceased to be entitled to it for any reason.

How to claim a pension credit

There are several ways to claim a pension credit, but the government has said the quickest route is over the phone.

If you don’t want to call the pension credit application line, you can submit a paper application by contacting a voluntary organization such as AgeUK or Citizen’s Advice – or ask a friend or family member to call the helpline to apply.

You will need three elements to enter your pension credit application.

This is your national insurance number, bank details and information about your income, savings and investments.

For those who are prepared, it is possible to start your application four months before reaching the age of eligibility for the pension credit.

And, you can also start your application after reaching this age – but it can only be backdated by three months.

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