Top of main content

What is Pension Credit?

Pension Credit is a benefit the government pays to help people over State Pension age make ends meet.

The charity Independent Age says up to a million people in the UK are missing out on Pension Credit payments they're entitled to.

If you’re eligible, the amount you receive will be based on:

  • your income

  • any savings or investments you hold

  • whether you’re single or in a couple

How does Pension Credit work?

There are two types of Pension Credit: Guarantee Credit and Savings Credit.

Guarantee Credit

This is a payment that tops up your income if you earn less than:

  • £177.10 a week for singles

  • £270.30 a week for couples

Savings Credit

Available to people who reached State Pension age before 6 April 2016 and have some savings, it pays up to:

  • £14.04 a week for singles

  • £15.71 a week for couples (only one of you needs to have reached State Pension age before 6 April 2016)

Who is eligible for Pension Credit?

To find out if you’re eligible for Pension Credit and see how much you could receive, you can use the government’s calculator. Before you start, make sure you have details of:

  • any current earnings

  • any savings and investments

What else does Pension Credit entitle you to?

If you receive Pension Credit, you may be able to claim other benefits such as a free TV Licence and a Council Tax reduction. 

You can use a benefits calculator on entitledto.co.uk to see what else you may be able to claim. 

What next?

If you’re able to start claiming Pension Credit, consider what you want to do with that money. You could look at using a portion of it to build your savings.

 

Find out more about saving with HSBC.