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Examples of Pension Credit

money 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 severely 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 £145.40
  • couple £222.05

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 £115.30
  • couple £183.90

Savings Credit rates – this is the maximum amount of Savings Credit

The current Savings Credit rates are:

  • single person – up to £18.06
  • couple – up to £22.89

Jackie – single, age 62

Jackie is single, aged 62 and owns her own home. She has a State Pension of £110.15. She has no other income. Her savings are £5,000.

Jackie will get Guarantee Credit of £35.25 a week, bringing her total weekly income up to £145.40. Her savings of £5,000 are ignored because they are below £10,000.

Because Jackie is 62 she can get Guarantee Credit only.

Because Jackie gets Guarantee Credit she will get full Housing Benefit, and help with other things like dental fees.

Stephen and Sarah – couple, both 75

Mary and Frank are both 75 and have £231.70 a week as follows:

  • basic State Pension (Stephen) £110.15
  • basic State Pension (Sarah) £66.00
  • personal pension (Stephen) £51.55
  • savings of £12,000 (we count £1 of income for every £500 of savings they have over £10,000, which for £12,000 totals £4)

As Stephen and Sarah’s income is over £222.05, they cannot get Guarantee Credit, but they are entitled to £19.03 Savings Credit.

Stephen and Sarah will get Pension Credit of £19.03, bringing their weekly income to £250.73.

John – single, age 63

John is 63 and gave up full time work eight months ago. He lives alone in his own home and earns £85 a week from a part time job.

As we ignore £5 of John’s earnings, we count the remaining £80 as income for Pension Credit purposes. John will get Guarantee Credit of £65.40, bringing his total weekly income up to £150.40.

John cannot get Savings Credit as he is only 63, but he may be entitled to Savings Credit when he reaches 65.

Betty – single, age 75

Betty is 75, severely disabled and lives alone. She has savings of £9,000 and gets £189.30 from the following:

  • Basic State Pension £110.15
  • Attendance Allowance £79.15

When working out her Pension Credit, we ignore her savings as they are less than £10,000, and we also ignore her Attendance Allowance.

Betty will get Pension Credit of £94.75 a week (this includes an extra £59.50 a week because she is severely disabled). This brings her total weekly income up to £284.05.

Betty cannot get Savings Credit because her qualifying income (£110.15) is lower than the Savings Credit starting point of £115.30 for a single person.

Her Attendance Allowance does not count as qualifying income towards Savings Credit.

Denis – age 60

Denis was 60 on 5 November 2011. He currently gets ESA of £71.70 a week and has no other income.

He will continue to get ESA until he reaches the minimum qualifying age for Pension Credit. This will be on 6 May 2013 when he will be 61 years and 6 months old.

At this time his total weekly income will increase to £145.40 if his circumstances remain the same.

Calculate your State Pension age

Use the State Pension age calculator to find out more about State Pension reform and when you can apply for Pension Credit.

Do it online