PEOPLE have only just realized that they could be entitled to an extra £200 a week in free cash – and thousands could be missed out.
Some 850,000 retirees are being urged to apply for pension credit before the cost-of-living payment deadline of May 19.
But posting in the Scrimping on a Budget Facebook group, many people say they don’t realize they can benefit.
One social media user said: “Just watched it on TV, there are almost a million retirees not claiming pension credit.
“It might be worth checking if it’s you or anyone you know over the age of 66, to check if they’re entitled to it”
Commenting on the post, another said: “What is pension credit please?”
And the third wrote: “Does anyone know what pension credit is?”
It comes when the government and Martin Lewis urges eligible pensioners to apply for the benefit to qualify for the £301 cost-of-living payment.
A successful pension credit application is made before 19 May and can be delayed up to three months.
Anyone receiving a benefit between 26 January and 25 February can receive all three installments of £900.
These include cold weather payments, free NHS dental treatment and free TV permits.
You can claim benefits online or by calling the retirement credit claim line on 0800 99 1234.
Before you make a request, it’s important to have all of your details ready.
You will need your National Insurance number, bank account details, and information about your income, savings and investments.
Below we explain who is eligible for retirement credit, how much you’ll get, how to apply, and how you’ll get paid.
Who is eligible for retirement credit?
It is available to people who are over state pension age and live in the UK, Scotland or Wales.
This number is now growing to 66 for both men and women.
Previously, couples, in which one person was over state pension age, could claim, but the new rules now mean both people in a couple must be above retirement age to be eligible. apply for.
This means that if you are single and move in with a partner younger than the state pension age, you will no longer be eligible.
But if you already got pension credit under the old system, it won’t stop unless your circumstances change.
To qualify, you need a weekly income of less than £201.05 for singles or £306.85 for couples.
Your earnings are calculated taking into account various factors including:
- Your state pension
- Any other pensions you have saved, such as workplace savings or a private pension
- Most social security benefits, for example, carer benefits
- Any savings or investments worth more than £10,000
- Income from a job
The calculation does not include:
- attendance allowance
- Bonus on Christmas
- Disability living allowance
- Individual independent payment
- Housing welfare
- council tax relief
If your income is too high for retirement credit, you can still get some savings retirement credit, so you should check.
How much can you get in retirement credit?
There are two parts of the benefit and retirees may be eligible for one or both – here are the current rates for the tax year:
- Credit guarantee – increase your weekly earnings to the guaranteed minimum. This is £201.05 a week if you are single and £306.85 a week for couples.
- Credit Savings – provide extra money if you have already saved money for retirement. You can get an extra £15.94 per week for one person or £17.84 per week for a couple.
You can also get an extra pension credit if you are disabled, have caregiving responsibilities or have to pay certain housing costs such as mortgage interest payments.
For example, you could receive £61.88 a week or £72.31 per week for each child or young person for whom you are responsible.
If you are a person with a disability or care for someone with a disability, you may be able to get more.
For example, if you are severely disabled you could get an extra £76.40 a week, or if you care for another adult you could get an extra £42.75 a week.
How to apply?
You can start enrolling up to four months before reaching state pension age.
Applications for pension credit can be made on the government website or by calling the pension credit claim line on 0800 99 1234.
You can ask a friend or family member to call you, but you need to be with them when they call.
You will need the following information about you and your partner if you have:
- national insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to defer your application (usually 3 months before or the day you reach state pension age)
If you claim after reaching state pension age, you can delay your claim date by up to three months.
How will I be paid?
Your benefits are usually paid into an account, such as a bank account.
They are usually paid every four weeks.
You will be asked to provide your bank, building association or credit union account details when you make a claim.
But if you have trouble opening or managing your account, you can request another way.
Meanwhile, here is a Full list of free software available to pensioners, including those with pension credit.
In addition, Martin Lewis issued a Emergency alerts for thousands who risk missing out on up to £30,000 to boost their income.
Do you have a money problem that needs sorting? Get in touch by sending an email email@example.com