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22 January 2008 15:00
I am a woman, aged 66, and I live on my own. I retired five years ago and I’m finding it difficult to manage on my state pension and occupational pension, which total £110 per week. I have savings of just under £7,000 but these are dwindling rapidly. I’ve heard about Pension Credit but I’m not sure what it is or whether I would be eligible to claim it.
By Yours Money Expert
Yes, you will be able to claim Pension Credit. The basic amount that the Government says a single person needs to live on is £114.05 a week; this is called the ‘guarantee credit’. When calculating your entitlement, the Pensions Service will take into account your actual income (in your case £110 per week) and will also calculate an income of £1 a week for every £500, or part thereof, from savings over £6,000. Any interest paid is ignored. Therefore the income used when your benefit is calculated will be £112 per week and you will receive £2.05 per week ‘guarantee credit’. As you are over 65 you will also be eligible for the ‘savings credit’, another part of the Pension Credit. This is paid to people who have an income higher than the basic state pension of £84.25 per week, or who have modest savings. In your case you will get another £17.05 per week, making your combined guarantee and savings credits £19.10 per week. Because you are eligible for guarantee credit you will also get your council tax paid in full and may also get help if you have a mortgage or pay rent. You will also be entitled to free dental treatment, provided you have an NHS dentist, and help with paying for glasses. You will need to show proof of your entitlement to your dentist or optician, such as a letter from the Pension Service. People who live alone and receive Attendance Allowance or Disability Living Allowance higher or middle rate care component (these are benefits for people who need help with their bodily functions or supervision to prevent harm), are eligible for additional Pension Credit, provided no one is receiving a Carer’s Allowance for looking after them. It may also be possible to get additional money if you spend 35 hours a week or more caring for somebody who receives one of these benefits.
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JTinkley says
I've recently retired from AppLogic and am having similair difficulties. Me and my wife are now having to get by on considerably less than what we were earning before retiring. Applied for credits recently so here hoping the response is good news.
23 April 2012 23:07
Claudycontreras says
My uncle worked at a Sell Textbooks store and he retired two years ago.His pension is very low and he decided to request a pension credit.The bank approved the credit and they've also made him some tax discounts.
19 April 2012 13:21
egorhythmia says
If you have the money then you can buy a property with cash. A down payment is best and can get you a couple of % down from the price as well. People over 65 years can take their pension from what I know and you could offer a very nice "gift" to your loved ones. Now if you're the one thinking about buying a home and you are under the age of retirement you can always go through a mortgage. A Phoenix Mortgage Lender should prove to be a wise decision if you're planning on getting your own home. Be wise about it and remember that a home is a good investment on the long run.
09 August 2011 13:23
LindsaySkye says
My grandfather had a similar problem too. He is 76 years old and his savings are rapidly decreasing. I don´t know how the Pension Credit works, but my grandpa always uses the forex brokers' advice for his financial decision. He is very careful with his money so I guess I should trust his judgment.
25 July 2011 14:34
whitecottage1049 says
admin said: I am a woman, aged 66, and I live on my own. I retired five years ago and I’m finding it difficult to manage on my state pension and occupational pension, which total £110 per week. I have savings of just under £7,000 but these are dwindling rapidly. I’ve heard about Pension Credit but I’m not sure what it is...HiPlease see my latest financial topic regarding Pension Credits and I really hope that you have applied for this and received it??
admin said: I am a woman, aged 66, and I live on my own. I retired five years ago and I’m finding it difficult to manage on my state pension and occupational pension, which total £110 per week. I have savings of just under £7,000 but these are dwindling rapidly. I’ve heard about Pension Credit but I’m not sure what it is...
Hi
Please see my latest financial topic regarding Pension Credits and I really hope that you have applied for this and received it??
10 June 2008 09:31
