All employers in the United Kingdom are required to provide a pension plan. It is in addition to the government-provided State Pension. As a result, pensions are an essential aspect of life, and you’ll almost certainly depend on one or more of them after you retire.

For those who are still young, it might seem unreasonable to start planning about their pension. However, as many older people will confirm, planning your retirement early in your career may be quite beneficial. After all, the sooner you begin investing, the more money you will have when you retire.

Pension credit is available to those who have achieved State Pension age in England, Scotland, or Wales. You may get more rewards. This page explains the pension credit’s eligibility and application.

What is Pension credit?

What exactly is Pension credit

Low-income people above state pension age may get pension credit tax-free. Even if you have a pension, assets, or a house, you may qualify. Even a little Pension Credit award might unlock more advantages. Pension Credit may pay ground rent and service costs.

Pension Credit-related perks

You may qualify for additional help if you qualify for pension credit, including:

You may qualify for additional help if you qualify for pension credit, including

  • Housing assistance (if you rent the home in which you live)
  • Reduction in council taxes
  • Assistance with mortgage interest (if you own the house you live in)
  • A free television licence (if you are 75 or older)
  • Expenses for heating
  • The National Health Service (NHS) covers dental treatment, glasses, and hospital transportation costs.
  • To get pension credit, you must:
  • England, Scotland, Wales, or Northern Ireland.
  • You must be pension-eligible.
  • When travelling,
  • You will be qualified if you meet one of the following criteria:
  • You and your partner are both eligible for the Pension.
  • Housing Benefit for those over the age of 65 is available to one of you.

Who will be considered a “Partner”?

Who will be considered a Partner

A companion maybe 

  • Your wife, civil partner, or spouse (if you live with them).
  • You are considered a couple if you live together but are not married or in a civil partnership.

What is the cost of a pension credit?

What is the cost of a pension credit

Pension credit is two-part. “Guarantee credit” is the most significant part. The “savings credit” helps low-income retirees who haven’t saved enough for their pension. One may be more appropriate. Each works:

Credit assurance Guaranteed credit increases weekly income. Your income includes wages, pensions (including the state pension), and savings. Then it’s refilled:

Singles whose monthly payment (including pension) is less than £177.10 will obtain a pension credit top-up.

Couples with weekly incomes below £270.30 will receive a pension credit top-up.

Credit for monetary savings

Credit for monetary savings

It is effectively a reward for lower-income seniors who have not been able to save enough money to supplement their pension. If you’ve saved more for retirement, you may get up to £15.71 per pension credit for a week (approximately £800 per year) in savings credit.

The word is misleading since it includes the amount of money you have saved, the amount of income you get from your savings, and any additional pension pots and earnings from work or other sources.

If you’re single, you’ll earn 60p for every £1 of weekly income between £153.70 and £173.75, up to £14.04 each week.

However, it begins to taper off after a particular pay level, and your pension credit is reduced by 40p for every £1 of earnings over £173.75 per week.

If you’re married, every £1 of weekly income between £244.12 and £265.20 earns you 60p in savings credit, up to a maximum of £15.71.

However, it begins to taper off at a particular pay level, and your pension credit is reduced by 40p for every £1 of earnings over £265.20/week.

You may be qualified for a higher savings credit if you are a carer, severely disabled, responsible for a child or a young person, or have savings or housing requirements. Use the pension credit calculator to figure out how much you may claim.

How does one go about requesting pension credit?

How does one go about requesting pension credit

Before the State Pension Age, you have four months to prepare and begin the application process.

You may apply after reaching the State Pension age, but you can only go back three months. If you were eligible at the time, this means your initial payment might contain up to three months of Pension Credit.

  • When applying for pension credit, certain information is necessary.
  • If you wish to apply for pension credit, you’ll need the following information about yourself and your spouse.
  • Any income, savings, or investments information
  • On the day you plan to submit your application to any backdate, your income, savings, and investments (generally 3 months back or the date you attain the state pension page)
  • You must supply information on your bank account whether you apply in person, over the phone, or via the mail.
  • Applications via phone are welcome.
  • 0800 99 1234 is the phone number.
  • 0800 169 0133 (textphone)
  • Relay UK: 18001, then call 0800 99 1234.
  • Monday through Friday, starting at 8 a.m. and ending at 6 p.m.
  • You may also use a video relay service, but you must first decide if you qualify.
  • Because of Covid-19, applying by phone is likely to take some time.
  • Mail-in your application
  • Print and complete the pension credit claim form to apply by mail, or call the claim line to request a form.
  • Submit or have your claim form completed by the Pension Service.
  • 8 Pension Service
  • Postal Processing Site B
  • Wolverhampton
  • 1AN WV99


Pension Credit augmented low-income retirees’ income, albeit only one-third of those eligible claim it. You are dropping hundreds of pounds per year if you are one of these folks. Check to see whether you qualify and how much will be the pension credit for you.

If you get the State Pension age on or after April 6, 2016, you may still be eligible for the Guarantee Credit component of Pension Credit.

It’s good to apply even if you only qualify for small pension credit. It may help you be eligible for certain benefits while saving you some extra money.

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