1. What is Pension Credit?

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

2. How Does the Calculator Work?

The calculator uses the Pension Credit formula:

Where:

• \( \text{guarantee credit} \) — Standard guarantee amount (GBP)
• \( \text{income} \) — Weekly income (GBP)
• \( \text{savings credit} \) — Savings credit amount (GBP)

Explanation: The formula calculates the maximum of zero or the difference between guarantee credit and income, then adds any savings credit entitlement.

3. Importance of Pension Credit Calculation

Details: Accurate Pension Credit calculation helps eligible pensioners receive the financial support they're entitled to, which can significantly improve their quality of life in retirement.

4. Using the Calculator

Tips: Enter the standard guarantee amount, your 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: People over State Pension age who live in England, Scotland or Wales and have a low income may be eligible for Pension Credit.

Q2: What is the difference between Guarantee Credit and Savings Credit?
A: Guarantee Credit tops up your weekly income to a minimum amount, while Savings Credit is extra money if you've saved some money for retirement.

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 Pension Credit affect other benefits?
A: Yes, getting Pension Credit may help you qualify for other benefits like Housing Benefit, Council Tax Reduction, and free TV licence if you're over 75.

Q5: Can I claim Pension Credit if I have savings?
A: Yes, you may still be eligible for Pension Credit if you have savings, though the amount may be affected by your capital above £10,000.