Pension Credit at 65 !!!

ambrub88

I very much hope someone can give me advice on my concerns of what happens when I reach 65.
Our current situation is that myself (age 60) and my wife (51) have been on pension credit since April 09. Previous to this we bought a home in Jul 08 and because the repayment mortgage deals were high at the time, we took an inerest only mortgage with the idea to swap to a repayment when the interest rates improved. In February 09 I was made redundant and so stopped any chance of swapping our mortgage.
Currently we have £5000 savings, we receive council tax reduction.
Wha is my position when i reach 65 ? I only have a state pension to look forward to. At present most of my mortgage interest is paid via Pension Credit. Would this still apply after Im 65 or would I have to sell the house and try to buy a smaller property from the remaining equity ? Many many thanks to anyone who can help

real1314

Unless your income rises above your current level including all pension credit and mortgage payments, it will simply carry on at the same level or a little higher. Pension credit just adds in the "Savings credit" element from age 65 onwards.

anmarj

it will depend on what your income is after 65 for both. although the savings credit element comes it, if you also have occupational pensions starting then this could take you over the threashold for the guaranteed element. If you end up on savings credit only then the interest will still be included in the appropriate amount but the amount paid under PC could be less and there would be no money paid directly to your lender. (the maximum savings credit only is around £27 per week)

redz

You won't receive the savings credit element of PC as your partner is under 60.

Unless your total income when you reach state pension age is higher than your applicable amount for Pension Credit you won't see any change to your total amount of weekly benefits.

anmarj

redz wrote: »

You won't receive the savings credit element of PC as your partner is under 60.

/QUOTE]


he can received the savings credit element even if his partner is under 60, it only as to be one person who is over 65 to qualify

redz

anmarj wrote: »

he can received the savings credit element even if his partner is under 60, it only as to be one person who is over 65 to qualify

Correct. I was thinking of AIP's. Shouldn't really post on on forums after I've had a few drinks.:beer:

ambrub88

Many thanks to all who have written, your answers much appreciated