DON'T MISS OUT
How to claim pension credit worth £3,000 a year as 1.3million missing out
MILLIONS of Brits in retirement could be missing out on pension credits worth an average of £3,000 a year, according to new government figures.
Pension credit is a means-tested benefit that helps those on lower incomes by giving them extra money throughout retirement.
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It's available for people who live in England, Scotland or Wales, who are over the state pension age, which is currently set at 65 for both men and women, although this is set to rise to 66 in October this year.
It's estimated that 1.3million retirees are missing out on the pension boost because they wrongly believe they're not eligible.
You can claim the credits even if you have savings, own your own home, may be working or even if you've been turned down for them in the past.
The government has launched a 12-week campaign to raise awareness and get more people to claim the welfare payment.
How to apply for pension credit
THE pension credit claim line can be reached on 0800 99 1234. It's open Monday to Friday from 8am to 7:30pm.
You'll need some information to hand before you make the call, including:
- Your national insurance number
- Information about your income, savings and investments
- The details for the account you want the money to be paid into
The earliest possible date to apply is four months before you reach your state pension age.
If you claim after you reach pension age, you can backdate your claim for up to three months.
How much you'll be paid depends on your individual circumstances.
Fortunately, there is a , which will tell you exactly what you can expect to receive.
You'll need to have a lot of financial information to hand including details of your earnings, benefits, pensions, savings and investments.
You'll also need the same information for your partner if you have one.
Helen Morrissey, pension specialist at financial provider Royal London, said: "Only about 60 per cent of those currently entitled to pension credit claim it.
"There are so many misconceptions about who can claim it – these myths need to be busted if we are to boost take up of this valuable benefit."
You can only backdate claims by three months so it's important you know the steps you can take to ensure you don't miss out on them in the future.
There are two elements to pension credit - the guarantee pension credit and the savings pension credit.
Guarantee pension credit tops up your income to the minimum set by the government - that's £167 worth of income a week, or £255 a week for couples.
Meanwhile, savings pension credit rewards you for putting cash aside for retirement.
This amounts to up to £13.73 a week for single people, and up to £15.35 per week for couples.
But you might get more if you’re a carer, severely disabled, responsible for a child or young person, or have certain housing costs.
How to apply for a council tax reduction
IF you're on a low income or claiming pension credits you can apply to your local council for a council tax reduction.
Your bill could be reduced by up to 100 per cent, but how much you'll get depends on whether:
- You get pension credit
- You get the guarantee part of pension credit
- You only get the savings part of pension credit without the guarantee part
It also depends on your weekly income and how much you have in savings.
Councils run their own schemes, so you'll need to get in touch with your local one to claim. You can find the contact details on the .
You can ask for the reduction to be backdated to the date when your benefit was awarded, as long as it's within one month.
You can only start getting savings credit if you - and your partner, if you have one - reached state pension age before April 6, 2016.
Find out how much pension credit you may be entitled to by using the - you don't need to provide any personal details.
Claiming pension credit can also provide access to other benefits, such as help with housing costs, council tax or heating bills.
You can apply for housing benefit at the same time as you apply for pension credit so there's no need to fill out your details twice.
You will need to apply for a reduction to your council tax or cold weather payments separately.
MoneySavingExpert.com founder, Martin Lewis, explains how to get a free TV licence when you claim pension credit.
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