1. What is Pension Credit?

Pension Credit is a UK benefit that provides extra money to help with living costs for people over State Pension age. It consists of two parts: Guarantee Credit and Savings Credit.

2. How Does the Calculator Work?

The calculator uses the Pension Credit formula:

Where:

• \( Guarantee\ Credit \) — Standard minimum guarantee amount (GBP)
• \( Income \) — Your weekly income (GBP)
• \( Savings\ Credit \) — Additional credit for savings (GBP)

Explanation: The formula calculates the difference between your guarantee credit and income (if positive), then adds any savings credit you're eligible for.

3. Importance of Pension Credit Calculation

Details: Accurate Pension Credit calculation helps eligible pensioners receive the correct amount of financial support, which can significantly impact their quality of life in retirement.

4. Using the Calculator

Tips: Enter your standard guarantee credit amount, weekly income, and any savings credit amount. All values must be in GBP and non-negative.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for Pension Credit?
A: You must be over State Pension age and living in England, Scotland, or Wales. Your income and savings will affect how much you get.

Q2: What counts as income for Pension Credit?
A: This includes state pension, other pensions, earnings from employment, and most social security benefits.

Q3: How often is Pension Credit paid?
A: Pension Credit is usually paid weekly into your bank, building society, or Post Office account.

Q4: Does having savings affect Pension Credit?
A: Yes, savings over £10,000 may affect your Pension Credit amount. The first £10,000 of savings is ignored.

Q5: Can I claim Pension Credit if I have a partner?
A: Yes, you can make a joint claim if you have a partner, and their income and savings will be taken into account.