State Retirement Age: You Could Miss DWP Pension Credit Payments | Personal Finances | Finance

State pension payments can provide significant financial assistance, however, some Britons may even be eligible to receive additional sums of money. One payment that could be particularly useful for those who have reached retirement age is the pension credit, designed to provide a “top-up” to retirees. The sum is divided into two parts: the guarantee credit and the pension credit, the amount that a person receives depending on their situation.

Guarantee credit supplements weekly income if it is less than a certain amount, while savings credit is an additional payment for those who have saved money for retirement.

The pension credit, however, is unfortunately a payment that is grossly under-requested by those who are actually entitled to it.

In fact, research undertaken by Just Group has revealed that many people may be missing out on significant amounts of money.

On average, research shows retirees who do not make a claim lose to the tune of £ 2,656 per year.

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The pension credit is described as a gateway benefit, meaning that a claim could provide Brits with other levels of support.

Perhaps most notable is the right to a free TV license, a topic that has sparked much controversy in recent months.

Previously, everyone 75 and over could receive a free TV license, but following the rule changes in August 2020, the approach is different.

Now only those over 75 with pension credit can get a free TV license, which can lower another daily cost.

Currently, the standard TV license costs £ 157.50, so it’s understandable that those who are eligible to receive it for free will want to take advantage of this opportunity.

There are also other benefits to applying for a pension credit that are worth keeping in mind.

AgeUK explained that pension credit recipients are unlikely to have to pay a municipal tax bill unless other people live with them.

This is because pension credit recipients also receive free dental treatment from the NHS, in addition to being able to request assistance with travel expenses to the hospital and the cost of glasses.

In winter, Brits with a pension credit can also receive a cold weather payment of £ 25 if their area has experienced seven consecutive days of subzero temperatures.

The application process for receiving pension credit payments is intended to be straightforward.

Britons can apply up to four months before reaching the statutory retirement age, but can also apply at any time.

They will need certain information such as a national insurance number, savings details, and bank account information.

Individuals can use the online service to apply if they have already claimed their state pension amount.

Alternatively, people can choose to apply for pension credit over the phone or by mail, although this process is currently taking longer due to COVID-19.

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