State pension with savings

PaulDesmond

Hi. I was wondering how much savings I could have before it affected my state pension. I keep being told about it affecting my pension credit. What is the difference between state pension and pension credit. I believe the credits are on top od the state pension.

I find that for every £500 I have above £10,000 = a loss of £1 per week of pension credit, but I am not talking about pension credit unless help with council tax and council rent is part of this? Are these added to the state pension as pension credit.

 Example. If I had £30,000 in savings would this affect the state pension or only off what I would get for council tax and council rent. Would my expected SP of £185.15 per week be safe.

 Sorry if this is a bit confusing, but I can’t get my head around it.

MX5huggy

State pension is not means tested. You will receive the £185.15 no matter what your savings are or other income.

That presumes you have enough NI years , you should check. 

It is taxable but not taxed (other income will be taxed if the total goes over the threshold). 

comeandgo

Savings do affect pension credit which is a separate benefit from state pension.  If you have full state pension of £185.15 then you will not qualify for pension credit so if you are under the full state pension amount be careful in buying extra years to give you full state pension as you could inadvertently take yourself out of many benefits.

PaulDesmond

I do have the contributions needed. You mentioned "or other income."  Does this mean I can still earn and still get the SP?

Linton

PaulDesmond said:

I do have the contributions needed. You mentioned "or other income."  Does this mean I can still earn and still get the SP?

Yes,  the SP is paid without regard to any other income. You can carry on working for as long as you want, with the benefit that you don’t pay NI after SP age.

PaulDesmond

Okay so what remains is If I am on FULL SP do I not qualify for help with CT and Housing Benefit? That would work out at £487 per month with full 100% CT

xylophone

Here is a very comprehensive explanation of eligibility for Pension Credit.

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/large-print-factsheets/fs48-lp-pension-credit.pdf

If you do not qualify for PC but still have difficulty in paying rent/CT, you should contact your Local Authority for details of any support offered.

xylophone

Incidentally, you say that you are expecting to receive a full new state pension (£185.15) - presumably this is at some point in the next few months as you state in earlier posts that you were born in 1956.

You also mention in previous posts that you were "contracted out" of SERPS/S2P at some point in your working life so presumably you have an occupational private pension.

It appears that you also have some capital in the form of savings.

Eligibility for PC and CT/HB support will be assessed after having regard to all these factors.

xylophone

Yes,  the SP is paid without regard to any other income. You can carry on working for as long as you want, with the benefit that you don’t pay NI after SP age.

But see

https://www.gov.uk/guidance/prepare-for-the-health-and-social-care-levy

Get help to work out if you need to pay the Health and Social Care Levy

Check if you’ll need to pay the Health and Social Care Levy in the tax year 2022 to 2023, if you’re:

• an employer
• self-employed
• an employee
• above State Pension age and self-employed or an employee

PaulDesmond

Okay. At this moment in time I have no savings but there is a job opportunity on the horizon which would give me savings. 
My forecast is £178.11 but the last two years are Universal credit. But UC apear to be having computer issues and lots of us have not been credited. I have two years due to me which I have been informed by HMRC will increase it by about (£5.80 x 2). Can't find the figure.

Dazed_and_C0nfused

It is extremely unlikely that your State Pension can be increased by £5.80 x 2.

Realistically you are likely to find it can be increased by two post 2016 years contributions/credits.  

Year 1 will add £5.29 and year 2 the final £1.75 to give you £185.15/week.