Pension credit - savings credit

givememoney

Can anyone enlighten me regarding Savings Credit.

How do you know if you are eligible? Do they take into account your savings, as it is supposed to be a reward, perhaps they don't care how much you have.

I have just retired with full state pension and will be getting a small company pension

Any advice welcome

castle96

https://www.dwpe-services.direct.gov.uk/portal/page/portal/ba/lp?_piref278_36249_278_36248_36248.__ora_navig=

any use ?

Pollycat

In case the link above doesn't work, try this:

http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_180167

Fairly quick to complete and I found it pretty accurate for my Mum.

givememoney

Yes problem with this, they want to know how much you have tucked away.

We do not expect to get Pension Credit I am interested in Savings Credit where you get some extra because you have saved, I believe in another pension.

I would like to hear from anyone who is getting this Savings Credit so they can tell me the ins and outs

anmarj

savings credit is based on your income and any tarriff income for savings over £10k. There is a maxium amount of savings credit for both single and couples, and maximum income in which the cut off applies. bear in mind that from Monday the maxium amount of savings credit is going down down. Pension Credit is the overal name for the benefit with it split in two Guaranted and Savings. There is five beneftis which are not classed as qualifing income - JSA/ESA/Working Tax Credit/Spousal Maintence/Incapacity benefit for savings credit so they will use it the income for Guraranteed element but not for Savings Credit


Savings credit April 2012
threshold - single 111.80
threshold - couple 178.35
maximum - single 18.54
maximum - couple 23.73

the threshold is the minimum of qualifing income that is needed to work out whether you get Savings Credit, the maximum is the maximum amount of Savings Credit payable. Not sure what the top limit on income is for both of them yet;)

Pollycat

givememoney wrote: »

Yes problem with this, they want to know how much you have tucked away.

Of course they do!
They want to make sure you don't have too much income and/or too much savings!

givememoney wrote: »

We do not expect to get Pension Credit I am interested in Savings Credit where you get some extra because you have saved, I believe in another pension.

Anmarj has explained that Pension Credit is the overal name for the benefit with it split in two: Guarantee and Savings.

The calculator will tell you (assuming you put the correct amounts of savings and income) how much Savings Credit you may be entitled to.

If it says £0, then it's probable that your income and/or savings are too high to qualify - although it might be best to check with DWP to be sure.

givememoney wrote: »

I would like to hear from anyone who is getting this Savings Credit so they can tell me the ins and outs

My Mum gets it.
She has too much income (State pension & occupational widow's pension) to qualify for Guarantee Pension.
What do you mean by 'ins and outs'?

scotsbob

Pollycat wrote: »

In case the link above doesn't work, try this:

http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_180167

Fairly quick to complete and I found it pretty accurate for my Mum.

In order to calculate how much you may be entitled to you are asked about your income.
This includes the question "are you receiving maternity allowance?"
You are also asked to tick a box if you receive "employers maternity allowance"

I wonder how many people applying for pension credit will also be receiving maternity benefit! I imagine even less will be receiving it from an employer.

givememoney

Yes thanks everyone.

I have now gone and filled in the questionaire and it comes up a big fat zero.

I am guessing we have too much in savings to qualify.

ticktack_2

givememoney wrote: »

Do they take into account your savings, as it is supposed to be a reward, perhaps they don't care how much you have.

It's not a reward for saving. It's an attempt to keep from punishing people for saving.

It came about, if I remember correctly, because when the Pension Credit (Guarantee) was brought in, many pensioners found that because they had a small occupational pension, or a small amount of savings, they didn't qualify for Pension Credit, with the result that they might as well not have bothered to save. So Pension Credit (Savings) was added, in order not to disadvantage the more prudent pensioners. It more or less restores the margin between the total income of pensioners totally reliant on benefit, and pensioners with some -- but not a lot -- of non-benefit income or savings. At least that's the intention (I think).