Pension Credit - Factsheet April 2014

[Terpe]

This factsheet is about Pension Credit (PC), a benefit with two parts:-

PC Guarantee Credit provides a guaranteed level of income for people over the qualifying age, which is increasing at the same pace as the State Pension age for women. The qualifying age is 62 in April 2014 and will be 62 and 6 months by April 2015. PC Guarantee Credit is worked out by comparing your income with the amount the Government thinks you need to live on.

PC Savings Credit is paid to people aged 65 and over. It is worked out by looking at the level of retirement provision you have made. It may be paid as well as PC Guarantee Credit or on its own.
The information in this factsheet is correct for the period April 2014 – April 2015. Benefit rates are reviewed annually and take effect in April but rules and figures sometimes change during the year.

Here's the Factsheet in PDF format

[Arthur Little]

Pension Credit - especially with the Guarantee Element incorporated - is a particularly useful resource for boosting the incomes of those people who may be early retired from full time work but have not yet reached the age to qualify for State Pension.

It amounts to only a few pounds per week, but can "open doors" to such noteworthy entitlements as ... ... free dental treatment, plus substantial discounts on the purchase of spectacles and reduced Council Tax.

It is payable to persons between the age of 60 and the current retiral age of 65 ... even to those in receipt of a modest occupational pension that falls below a specified level.

[bigmac]

i get the savings credit--i was awarded it in feb 2013--and its in place for--5? years from that date. it has recently been increased.

does anyone know if this savings credit counts towards the sponsorship income requirement ?

[Terpe]

i get the savings credit--i was awarded it in feb 2013--and its in place for--5? years from that date. it has recently been increased.

does anyone know if this savings credit counts towards the sponsorship income requirement ?

In principle it's a non-permitted source.

[bigmac]

thanks Terpe.

also
It is payable to persons between the age of 60 and the current retiral age of 65 ... even to those in receipt of a modest occupational pension that falls below a specified level.

that line seems ambiguous---i think the threshold age is now higher than 60--although i got guarantee credit at 60--6 years ago.

and it extends beyond 65---for the same reason

[Terpe]

thanks Terpe.

also
It is payable to persons between the age of 60 and the current retiral age of 65 ... even to those in receipt of a modest occupational pension that falls below a specified level.

that line seems ambiguous---i think the threshold age is now higher than 60--although i got guarantee credit at 60--6 years ago.

and it extends beyond 65---for the same reason

Not sure where that's from bigmac

It says in the first post #1 about eligibility and age for each part of Pension Credit

Off-topic I know, but I just now applied for a state pension forecast for both myself and my wife.
Need to wait for an activation code now

[bigmac]

Pension Credit - especially with the Guarantee Element incorporated - is particularly useful resource for boosting the incomes of those people who may be early retired from full time work but have not yet reached the age to qualify for State Pension.



It amounts to only a few pounds per week, but can "open doors" to such noteworthy entitlements as ... ... free dental treatment, plus substantial discounts on the purchase of spectacles and reduced Council Tax.

It is payable to persons between the age of 60 and the current retiral age of 65 ... even to those in receipt of a modest occupational pension that falls below a specified level.

i was referring to the last paragraph of Arthurs post

[Arthur Little]

thanks Terpe.

also

It is payable to persons between the age of 60 and the current retiral age of 65 ... even to those in receipt of a modest occupational pension that falls below a specified level.

that line seems ambiguous---i think the threshold age is now higher than 60--although i got guarantee credit at 60--6 years ago.

and it extends beyond 65---for the same reason

Not sure where that's from bigmac

OK ... perhaps I ought to explain for the sake of clarity.

During the 1990s, I suffered a bout of reactive depression arising from two close family bereavements, viz- the sudden, unexpected death of my father ... followed, in fairly quick succession, by the premature passing of my first wife in the wake of a lengthy period of illness.

Fortunately, my daughter had, by then, graduated from university and begun a career in her chosen profession as a Speech & Language Therapist with Grampian Health Board ... while my son was about to start work locally on completion of a Youth Training Scheme (YTS) leading, in turn, to good secure employment as a cycle mechanic.

So I decided to apply for early retiral on health grounds from an administrative post I'd held for many years with the former Tayside Regional Council's Social Work Department - a decision I've never regretted - and consequently received a protected index-linked occupational pension in addition to a severance allowance in the form of a substantial *lump sum commensurate with my lengthy years of uninterrupted service.

Notwithstanding this stroke of luck, *nest eggs do not last forever and, on turning sixty in September 2004, I contacted The DWP to inquire into the possibility of retired men being able to claim all or part of their State Pension at the same age as women ... ... based on the premise of equal opportunities.

So that led to me learning about Pension Credit ... until then I'd never even heard of it!

Thankfully, I qualified for the Guaranteed Element I mentioned in #2 ... and believe me, it turned out to be a "godsend" for someone in my situation. Although, I have to admit, that when the time came for sponsoring my present wife's Spousal Visa back in January 2009, I worried myself sick throughout the waiting period, lest her application be refused because I might've been perceived by an ECO to be, well ... claiming a "type of benefit".

Benefit or not, my wife's visa was approved in just over 4 weeks and later the same year, my entitlement to GPC automatically ceased when I qualfied for State Pension at age 65, in my case.

Immigration Rules have changed significantly all round since then, of course, therefore I have no idea how things stand for sponsors who are receiving Pension Credit nowadays.

BIG MAC ... but my understanding is, that unless there've been any recent overhauls in the age entitlements to Guaranteed Pension Credit, it's still claimable between 60 and 65 only - with PC Savings Credit being reserved for those aged 65 and over as Terpe indicates.

[bigmac]

BIG MAC ... but my understanding is, that unless there've been any recent overhauls in the age entitlements to Guaranteed Pension CreditPension Credit, it's still claimable between 60 and 65 only - with PC Savings Credit being reserved for those aged 65 and over as Terpe indicates.

i really dont think theres an upper age limit--on getting pension credit---after all--someone of 65 or less--who doesnt qualify for the full state pension--and gets the PC guarantee---wont lose it once they reach 65+

in my case--i no longer qualified for the guarantee credit--at 65--in feb 2013--simply because my state pension lifted me out of the poverty trap---but i DID get awarded the savings credit--with no need to notify of any income changes for the next 5 years. so--i still get savings credit now--plus full state pension--at age 66.

[grahamw48]

Commencement of entitlement to Pension Credit is now, I believe, graduated (as with bus passes) for new applicants.

Details of qualifying birth dates etc, are on the govt. website.

[bigmac]

my last reply was a bit late at night--and alcohol fuelled--so wasnt totally right.

as far as i am aware--pension credit guarantee currently stays in force beyond state pension age--if the claimants income--including housing costs--( mortgage interest )--is below a certain threshold--so the guarantee credit is a means tested top up

savings credit starts at state pension age--if the claimant has savings above a certain threshold--but with an upper limit.

so it seems to be an either/or benefit. no wonder IDS wants to introduce a simple one size fits all pension.