How do I know if I am missing out on Pension Credit?

Full answer

Pension Credit is a means-tested benefit for people over State Pension age on a low income, and it is one of the most under-claimed benefits in the UK - a large share of those entitled do not claim it. It comes in two parts. Guarantee Credit tops your weekly income up to a minimum level set by the government; Savings Credit is a smaller extra amount for some people who reached State Pension age before 6 April 2016 and have modest savings or a second pension. The exact qualifying income thresholds and award amounts are set annually and are not figures I will quote here - check gov.uk or use the official Pension Credit calculator for current rates. The key point is the mechanism: the new full State Pension is GBP 241.30 per week (around GBP 12,548 a year) for 2026/27, and if your income sits below the Pension Credit guarantee level you may be topped up. Even a small award matters because Pension Credit is a passport benefit - receiving it can unlock Housing Benefit, Council Tax Reduction, a free TV licence if you are 75 or over, help with NHS costs, and the Winter Fuel Payment. Who should check: anyone over State Pension age, including those who own their home outright, those with some savings, and couples where both have reached State Pension age. Having savings does not automatically rule you out, though larger amounts reduce the award. A common mistake is assuming a full State Pension or a small private pension means you do not qualify - the only way to know is to run the calculation, because housing costs, disability and caring responsibilities can raise your applicable amount. You can usually backdate a claim by up to three months. Use the gov.uk Pension Credit calculator to check eligibility, and model your overall retirement income with the pension calculator.

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