Thursday , April 2 2020

Pension Credit provides extra income in retirement and eligibility dates change in 2020 | Personal Finance | Finance

Everyone will receive state pension so long as they have enough National Insurance contributions under their belt. To receive any level of state pension, at least 10 years of NI contributions will be needed. The new full state pension will be £168.60 a week for those who have over 30 years of NI contributions. This will be over £8,750 a year but it is important to check on individual state pensions online. The government will provide a predicted amount of what will be received as well as exact dates for reaching state pension age.

However, there is another aspect of state pensions which many people miss out on.

Pension Credit is an extra boost that certain retirees could receive. It is a perk which Money Saving Expert Martin Lewis refers to as ”one of the worst-claimed benefits out there”.

Pension Credit is an income-related benefit split up into two parts – Guarantee Credit and Savings Credit.

Guarantee Credit is designed to be a top up for weekly income, while savings credit is an additional payment for those who have saved money towards retirement.

READ MORE: Pension: Saving an extra 1% of salary could see 25% pension pot boost

Savings Credit is an extra payment for people who have saved some money towards their retirement, which can include personal pensions.

For those who qualify, they will receive up to £13.73 extra a week. Or, £15.35 for couples.

It may be possible to receive more in Pension Credits if the claimant is a carer, severely disabled, responsible for a child or young person, or have certain housing costs.

On top of this, qualifying claimants could also receive other benefits such as Housing Benefit, Council Tax Reduction, Cold Weather Payments and help with the costs of NHS services. 

From 6 March 2020, anyone born between 6 June 1954 and 5 July 1954 will be able to qualify for Pension Credit.

Further updates to qualifying ages will occur on the 6 of May, July and September 2020.

For anyone who is eligible, applications can be put in for Pension Credit up to four months before the qualifying date.

Timing will need to be kept an eye on as the government warns that claims can only be backdated by three months.

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