Pensioners with savings can still qualify for Department for Work and Pensions (DWP) support worth £4,300 a year on average, despite a widespread misunderstanding. Around 910,000 eligible pensioners are missing out on £2.5 billion in support, according to MSE, largely because they believe that having any savings or investments disqualifies them.
Eligibility criteria explained
There are only a few fixed criteria that need to be met to be eligible for Pension Credit. Applicants must live in the UK, be over the state pension age, and have a weekly income below £238 if single, or £363 if in a couple.
The income threshold can be higher for those with a disability. The UK Government website also provides a Pension Credit calculator where people can check if they qualify.
How savings affect your claim
Savings or investments under £10,000 in total value will not affect a Pension Credit claim at all. For those with savings over £10,000, an extra £1 is added to their weekly income for each £500 above this threshold. For example, someone with £11,000 in savings would add £2 to their weekly income calculation.
Pension Credit tops up weekly income, so the exact amount received varies from person to person depending on their other income and savings. On average, recipients get around £4,300 a year from the benefit.
Additional benefits and support
Even if someone is only entitled to a few pounds from Pension Credit, it is still worth claiming because entitlement can open the door to a range of other discounts, benefits, and support. This includes a free TV licence once you reach 75, council tax reductions, the Warm Home Discount, housing benefit, Cold Weather Payments, free dental treatment, and some social tariffs.
Other myths that stop people from claiming include the belief that they won't be eligible if they own their home. In reality, if the property owned is the one the person is living in, it won't be counted as income or savings for eligibility.
For those who know they are eligible but find the application process difficult, free support and advice is available through organisations such as Citizens Advice and MoneyHelper.
