Pension credit

If you are sixty or more years old, you are entitled to Pension Credit which is added on top of your State Pension. This is a guaranteed minimum weekly income of at least £102.10 (single) or £155.80 (with partner). People aged sixty-five and above are given incentives if they have been able to set aside savings and income for their retirement. For singles, up to £14.79 in additional weekly income is awarded, while £19.20 a week is given to people with partners.

While Pension Credit is for people over sixty, the age of the beneficiary’s partner is not regarded. A partner is defined as your spouse, or a person you live with as if you were married.

Your Savings

If you have Pension Credit, £1 each week is deducted from your possible income for every multiple or partial multiple of £500 if you have over £6,000 in savings. Partial multiples of £500 are only counted on figures over £10,000 if you happen to be staying in a care home on a permanent basis.

The kinds of savings and investments taken into consideration by the Pension Service include:

• Income bonds
• Capital bonds
• Granny bonds
• Shares or unit trusts
• National Savings Certificates
• Premium Bonds
• Property and land (not including current residence if this is owned)
• Savings in a bank, building society or post office account
• ISAs, PEPs and TESSAs