Those who have paid into the state pension will be able to claim this payment as soon as they reach state pension age. Depending on when the pensioner was born, they will either get the basic or new state pension. On top of this weekly payment, some pensioners may get other payments from other means, such as a private pension. However, many pensioners could be missing out an an extra sum of money by not claiming pension credit.
What is pension credit?
This is an additional benefit some people may be able to claim after they retire and it is based on the pensioners’ income.
Pension credit is split into two parts, Guarantee Credit and Savings Credit, and are paid depending on circumstance.
To qualify for these, the pensioner must live in England, Scotland or Wales and they must have reached state pension age.
Both forms of the payment is a top up for those who need it.
How much is the payment and how is it claimed?
Guarantee Credit tops up a pensioners weekly income if it’s below £167.25 for single people and £255.25 for couples.
Savings Credit can add up to £13.73 per week for single people and £15.35 for couples.
Pensioners can claim the payment over the phone or by using a paper application.
They can start the application four months before reaching state pension age and can also backdate any claims for three months.
The basic state pension applies to men born before 6 April 1951 and women born before 6 April 1953.
Pensioners can claim the new state pension if they are born on or after 6 April 1951 and women born on or after 6 April 1953.
When they claim the new state pension, the bank account is paid into an account of their choice within five weeks of reaching state pension age.
Those who claim the basic state pension will receive the payment within the first full week of reaching state pension age.
Pensioners are also able to inherit their state pension from their spouse.