Pension Credit is a tax-free payment for people aged 60 or over living in Great Britain, giving them extra money each week.
In order to get Pension Credit you do not need to have paid National Insurance Contributions(NIC’s).
Pension Credit is made up two elements:
• Guarantee Credit element which might be paid to people over 60 and adds up to their weekly income guaranteeing a certain minimum level.
• Savings Credit element, which is an extra amount for people aged 65 or over who have some savings for their retirement. The savings Credit will add up to their Guarantee Credit.
If you live your husband,wife or civil partner than you will need to add up your income in order to have Pension Credit calculated.
You are likely to be entitled to Pension Credit if your weekly income is less than £124.05 if you are single and £189.35 if you have a partner.
You may still be able to get Pension Credit if your weekly income is more than these amounts if, for example, you or your partner:
• have a severe disability
• look after a person who is severely disabled
• have certain housing costs – for example, mortgage interest payments
Also, if you or your partner are 65 or over you may be rewarded for saving for your retirement, up to:
• £19.71 if you are single
• £26.13 a week if you have a partner
You can get Pension Credit even if you live with your grown-up family, you own your own home or you get financial support from friends, family or charity.
You can apply for Pension Credit by freephone by calling the Pension Credit application line 0800 99 1234 or follow the link for the application form .
You can only apply if you are 60 or over or if you are turning 60 in four months time.
If you need further help, Taxfile’s tax accountants in South London and Exeter would be more than happy to guide you through your application.