UK state pension credit changes – act now or you risk running out of £ 35,000

The state pension is something that many people rely on in their later years. There are two types of state pension, the basic and the new, and the one to which you are entitled depends on your date of birth. The amount you receive depends on a number of factors, such as your national insurance contributions and, of course, the type of state pension you are entitled to. Some people may also qualify for a pension credit – which is an income-related benefit made up of two parts: the guarantee credit and the savings credit.

Guarantee credit supplements your weekly income if it is less than £ 167.25 for a single person.

For a couple, that comes to £ 255.25.

On the other hand, the savings loan is an additional payment that is made to people who have saved money for their retirement.

You can use the government pension credit calculator to find out if you are eligible for the pension credit.

To be eligible, you must live in England, Scotland or Wales.

In addition, you or your partner must have reached the age of eligibility for pension credit.

A partner in this sense counts as a husband, wife, or civil partner (if you live with them), or someone else you live with as if you were married.

Starting next week, May 15, the rules for pension credit eligibility will change.

This means that you will only be eligible for it if you and your partner are both of the age of pension credit eligibility.

In addition, one of you must have reached the pensionable age and be eligible for housing allowance.

If you’re not eligible, the government website says you can apply for universal credit instead – which i News says is worth hundreds of pounds less per month.

According to figures calculated by Age UK, from 2019 to 2020, of the 15,000 affected by the reform, 4,650 mixed-age couples would lose £ 35,000 due to waiting at least five years for their youngest partner reaches state retirement age.

If you are not already claiming the pension credit, are in a relationship and qualify, it may be worth asking for payment now, before the deadline.

In fact, the Age UK charity is urging retirees who believe they are entitled to a pension credit and have a partner to apply by May 14.

This is because if you already have a pension credit and are in a relationship, you will continue to do so after the changes of May 15 – regardless of the age of your other half.

It should be noted that if your rights cease for some reason, for example your situation changes, you will not be able to obtain them again until you or your partner are eligible under the new rules.

The Ministry of Work and Pensions said: “This change was passed by Parliament in 2012 and means, for new claims from May 15, only retirees can claim a pension credit.

“If one partner is of working age, we think it’s fair that the same incentives to work and save for retirement apply as for other people of the same age.

“We’ve updated the advice online and written to all eligible mixed-age couples to let them know about the changes, which won’t affect them unless their circumstances change.”

READ MORE: Annuity credit: how to apply and how to claim it