What are Pension Credits, and how do I apply?

For many people, making ends meet on a fixed income can be tough, and it’s a common question whether their pension savings alone will cover their essential expenses. That’s where Pension Credits come in, designed to offer a financial safety net so you have a bit more breathing room when it comes to your retirement funds.

Maybe you’re already enjoying your golden years and think Pension Credits could make a big difference – well, you might just be right.

In this guide, we’ll walk you through everything there is to know about Pension Credits, breaking them down in simple terms so you feel more confident in your options. If you’re feeling uneasy about your pension choice or a possible mis-selling, let the team at Spencer Churchill Claims Advice answer any questions you may have.

This guide covers:

• What are pension credits?
• What are the types of pension credits?
• Who can get pension credits?
• How do you apply for pension credits?
• Protect your pension and your future

What are Pension Credits?

Pension Credits are a government benefit designed to help retirees cover basic living expenses. They act as a top-up for those on low incomes so they have enough money to meet daily needs in retirement. Pension Credits come in two types: Guarantee Credit and Savings Credit, which offer different benefits.

Guarantee Credit

This makes sure your income reaches a minimum level set by the government, regardless of your other sources of income. It’s there to provide a safety net, so you don’t have to worry about meeting your daily needs. It’s especially helpful if you rely mainly on State Pension or have limited additional income or savings.

It lets you cover basic expenses like food, housing and utilities, so you don’t have to stretch every penny. If you qualify, Guarantee Credit can make a big impact on your budget and help you manage everyday costs with better peace of mind.

Savings Credit

Savings Credit is aimed at retirees with modest savings or additional income beyond the State Pension. It’s a small extra payment to reward those who have saved towards retirement. If you are eligible, it provides a weekly boost to your income and helps you make your budget go a bit further.

Who can get pension credits?

To qualify for Pension Credits, you must meet certain criteria related to age, residency, and income level.

Guaranteed Credit

You must be living in the UK and have reached State Pension age (66 years old) to qualify. You’ll be topped up to the following minimum levels on Guaranteed Credit.

• £201.05 per week if you’re single
• £306.85 if you’re part of a couple

If your income is below these amounts, this will make up the difference.

Savings Credit

You must have reached the State Pension age before 6 April 2016, and you’ll receive the following small boost to those with modest savings or income beyond basic State Pension:

• Up to £15.94 per week for single people
• Up to £17.84 per week for couples

The higher your income/savings, the lower your Savings Credit amount.

Extra benefits of Pension Credits

If you qualify for Pension Credits, you may also get other perks, like help with rent, reduced council tax, and a free TV licence if you’re over 75. Many people miss out on these benefits without realising they qualify, so it’s worth checking if you’re eligible.

How do you apply for pension credits?

Applying for Pension Credits is simple and could offer important support for your retirement.

• You can apply online, by phone, or by post – whichever is easier.
• Make sure you have your National Insurance (NI) number and income/savings details ready, including info on any pensions and earnings.
• Once your application is submitted, you’ll be informed if any extra info is needed or when a decision has been made about your eligibility and amount.

Have you been mis-sold your pension?

Think you might have less in your pension than you earned? Do you think previous advice on your pension has led to losses, you might have been mis-sold. Our team at Spencer Churchill Claims Advice is here to listen and guide you through any concerns.

If we find you have been mis-sold your pension, we’ll do everything we can to get your money back, so you can retire in peace. We’ve helped thousands of people in your position claim what’s rightfully theirs – get in touch now and reclaim your retirement.

Find out more about our financial claim specialists.