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Pensions and retirement planning
Examples of Pension Credit
This page gives examples that explain how Pension Credit is calculated depending on age and circumstances. Read these examples to get a better understanding of how Pension Credit applies to a real-life situation.
Pension Credit rates used in examples
The following examples show how much Pension Credit different people might get.
The rates used in the examples are:
Standard amount - this is the amount that Guarantee Credit will top your income up to. This amount may be more if you are severeley disabled, are a carer or have housing costs such as mortgage interest payments.
The current rates for the standard amount of Guarantee Credit are:
- Single Person £130.00
- Couple £198.45
Savings Credit starting point – this is the point at which you start to build up Savings Credit.
The current Savings Credit starting points are:
- Single person £96.00
- Couple £153.40
Savings Credit rates – this is the maximum amount of Savings Credit
The current Savings Credit rates are:
- Single person – up to £20.40
- Couple – up to £27.03
Amy – single, age 60
Amy is 60 and lives in her son’s home. She has a State Pension of £103 a week and no other income. Her savings are £4,000. Amy applied for Pension Credit three months after her 60th birthday.
Amy will get Guarantee Credit of £27 a week, bringing her total weekly income up to £130. Her savings of £4,000 are ignored because they are below £6,000.
Because Amy is only 60 she can get Guarantee Credit only. When she is 65 she may also get Savings Credit.
Balbie and Manju – couple, both 75
Balbir and Manju are a couple and are both 75, and have £210.50 a week coming in:
| Balbie and Manju – couple, both 75 | |
|---|---|
| State Pension (Balbir) | £95.25 |
| State Pension (Manju) | £95.25 |
| Personal pension (Balbir) | £16.00 |
| Savings of £8,000 (£1 of income is counted for every £500 or part of £500 for any savings over £6,000) | £4.00 |
As Balbir and Manju’s income is over £198.45 they can’t get Guarantee Credit, but they are entitled to £22.21 Savings Credit.
Balbir and Manju will get Pension Credit of £22.21 a week, which brings their weekly income to £232.71.
Betty – single and disabled, age 66
Betty is 66, lives alone and is severely disabled. She has savings of £5,000 and gets £165.60 from the following:
| Betty - single and disabled, age 66 | |
|---|---|
| State Pension | £95.25 |
| Attendance Allowance (this is not counted as income for Pension Credit purposes) | £70.35 |
Betty’s savings are ignored as they are less than £6,000. Attendance Allowance is also ignored when working out her Pension Credit.
Betty will get Pension Credit of £87.60 a week (this includes an extra £52.85 a week because she is severely disabled). This brings her total weekly income up to £253.20. Betty can’t get Savings Credit because her qualifying income (£95.25) is lower than the savings Credit starting point of £96 for a single person.
Her Attendance Allowance does not count as qualifying income towards Savings Credit.
