Many People are losing their Access to Pension Credit.

Mustbeananswer??

imagine spending your whole life contributing to both the state pension and a workplace pension and in the end receiving a similar income to someone who had contributed to neither.

Thats what it feels li8ke sometimes Universidad????

hyubh

Mustbeananswer?? said:

imagine spending your whole life contributing to both the state pension and a workplace pension and in the end receiving a similar income to someone who had contributed to neither.

Can you elaborate - someone retiring now who spent their whole working life 'contributing to both the state pension and a workplace pension' (or for that matter, just 'contributing to the state pension' and so have been contracted in) would very likely have an income well above the pension credit level, assuming full time working.

Thats what it feels li8ke sometimes Universidad????

Stay off the Scotch.

frayedknot

hyubh said:

Mustbeananswer?? said:

imagine spending your whole life contributing to both the state pension and a workplace pension and in the end receiving a similar income to someone who had contributed to neither.

Can you elaborate - someone retiring now who spent their whole working life 'contributing to both the state pension and a workplace pension' (or for that matter, just 'contributing to the state pension' and so have been contracted in) would very likely have an income well above the pension credit level, assuming full time working.

Thats what it feels li8ke sometimes Universidad????

Stay off the Scotch.

If they'd only contributed to the state pension for their entire working life they would be a princely £3.05 better off per week than someone who had zero NI contributions and was on on PC. 

In fact after being stripped of the £200 winter fuel payment and not eligible for free dentistry, CTR, HB and loads of other benefits, the poor mug who's paid his dues would be substantially worse off.

It's an absolute disgrace!

In fact how anyone manages to be in a position to need Pension Credit is baffling. You get a stamp if you're employed, self employed or even unemployed. You get them for bringing up kids, caring, being on disability benefits, I even got 3 years for going to school. You can also buy them quite reasonably, particularly for part years.

The only time you don't get them is if you're a student, in the nick or abroad. How can someone ( not an expat or old lag) end up at retirement age with less than 35 years in a working life of 50 years?

dealyboy

frayedknot said:

hyubh said:

Mustbeananswer?? said:

imagine spending your whole life contributing to both the state pension and a workplace pension and in the end receiving a similar income to someone who had contributed to neither.

Can you elaborate - someone retiring now who spent their whole working life 'contributing to both the state pension and a workplace pension' (or for that matter, just 'contributing to the state pension' and so have been contracted in) would very likely have an income well above the pension credit level, assuming full time working.

Thats what it feels li8ke sometimes Universidad????

Stay off the Scotch.

If they'd only contributed to the state pension for their entire working life they would be a princely £3.05 better off per week than someone who had zero NI contributions and was on on PC. 

In fact after being stripped of the £200 winter fuel payment and not eligible for free dentistry, CTR, HB and loads of other benefits, the poor mug who's paid his dues would be substantially worse off.

It's an absolute disgrace!

In fact how anyone manages to be in a position to need Pension Credit is baffling. You get a stamp if you're employed, self employed or even unemployed. You get them for bringing up kids, caring, being on disability benefits, I even got 3 years for going to school. You can also buy them quite reasonably, particularly for part years.

The only time you don't get them is if you're a student, in the nick or abroad. How can someone ( not an expat or old lag) end up at retirement age with less than 35 years in a working life of 50 years?

... at the risk of winding you up a bit more ... and (if not already doing so) soon paying income tax.

There are certain categories of people such as those with severe disabilities or those with certain dependants who might have higher PC entitlements, but your broad point is well made and I think I read yesterday there are 120,000 people whose annual income (actual plus derived from savings) is higher by no more than £500 than their PC level. https://www.theguardian.com/society/article/2024/aug/04/uk-pensioners-left-on-financial-cliff-edge-by-cuts-to-winter-fuel-payments

Auti

Hello, I have read the thread and whilst I understand that some people have not tried as hard as they should to provide for themselves there are some who have tried their very best and still struggle. I will get sp next year and because I have tried my best (autistic get PIP) to be good I worked, until covid which caused me great problems, for 22 yrs part time (varying hours until I could manage 20 per week) at a school so paid only 38wks a year meaning I will have approx £320 per month pension and full sp. This sounds good and I would be happy but now I am also a Special Guardian to a child so with the best will in the world I am going to struggle to support child as they grow up so needing pension credit.

I have not been feckless and have tried my very best not to be a drag on society but I find circumstances (love my SGO child) have changed through no fault of child’s or mine (and I am saving state money as child not going into care and will become a productive member of society) so PC for me is hopefully an option.

thank you for reading and no disrespect intended

LHW99

xylophone said:

If a single/widowed pensioner's only income was the Basic SP or under (full Basic = £169.50 a week), it would be topped up through

GPC to £218.15 a week.

I agree it should be, but these will be people maybe around 80 years+, never had to think about finance, never had to engage with government forms, probably do not use / understand the internet and have no-one to take an interest and provide help.

It's people like this who don't claim pension credit, and therefore will now lose the winter fuel payment.

Something like 850,000 people if ITV is to be believed.

https://www.itv.com/news/2022-06-15/850000-missing-out-on-3300-pension-credits-each-year-heres-how-to-claim

hugheskevi

In the past (and probably still the case today) the biggest group of those entitled to Pension Credit but not claiming it are those who are entitled to very small amounts, eg under £5pw, and often only entitled to Savings Credit (not the Guarantee Credit). Although Savings Credit was abolished for those retiring under the new State Pension, it will still be around for older pensioners for many years.

This leads to a set of issues:

• Complexity - explaining the intricacies of the Savings Credit is more difficult than the Guarantee Credit. Premia in Pension Credit also create confusion about the level of income to be entitled.
• Effort - it initially appears that the individual will be entitled to very little in return for all the effort of going through their financial affairs either on a computer or speaking with a stranger
• Stigma - amongst the older generations of pensioners in particular there remains a stigma associated with claiming means-tested benefits

Pension Credit eligibility is not well understood, and every time Martin Lewis runs a campaign to "Don't stall, just call!" encouraging pensioners to call DWP to see if they are entitled, there is a huge surge of calls. Some pensioners call DWP multiple times per year to see if they are entitled. Getting the message to the correct people, and then motivating them to take action, is difficult.

Probably the publicity around Winter Fuel Payments will cause an uptick in take-up amongst this group, it will be interesting to see how much.

Mustbeananswer??

frayedknot said:

hyubh said:

Mustbeananswer?? said:

imagine spending your whole life contributing to both the state pension and a workplace pension and in the end receiving a similar income to someone who had contributed to neither.

Can you elaborate - someone retiring now who spent their whole working life 'contributing to both the state pension and a workplace pension' (or for that matter, just 'contributing to the state pension' and so have been contracted in) would very likely have an income well above the pension credit level, assuming full time working.

Thats what it feels li8ke sometimes Universidad????

Stay off the Scotch.

If they'd only contributed to the state pension for their entire working life they would be a princely £3.05 better off per week than someone who had zero NI contributions and was on on PC. 

In fact after being stripped of the £200 winter fuel payment and not eligible for free dentistry, CTR, HB and loads of other benefits, the poor mug who's paid his dues would be substantially worse off.

It's an absolute disgrace!

In fact how anyone manages to be in a position to need Pension Credit is baffling. You get a stamp if you're employed, self employed or even unemployed. You get them for bringing up kids, caring, being on disability benefits, I even got 3 years for going to school. You can also buy them quite reasonably, particularly for part years.

The only time you don't get them is if you're a student, in the nick or abroad. How can someone ( not an expat or old lag) end up at retirement age with less than 35 years in a working life of 50 years?

Great Post....covers eveything I wanted to say....Thank You !!