MARTIN Lewis has issued an urgent warning to 800,000 Brits missing out on pension credit.
The money-saving guru revealed that many pensioners on low incomes could be entitled to have their payments topped up.
AlamyMartin Lewis issued an urgent warning about pension credit[/caption]
Presenting the new series of the Martin Lewis Money Show, he said that people could receive thousands of pounds in extra cash.
You should be eligible for pension credit if your weekly income is lower than £201.95 if you’re single or £306.85 if you have a partner.
This could see you boosted to a “full” State Pension of £203.85 a week, though this is not guaranteed.
However, he added that even if its “worth thruppence” it could still be worth it as it is a “gateway benefit” that qualifies you for £600 extra cost of living support as well as help with council tax, energy bills and your TV licence when you turn 75.
One viewer sent in a video explaining to the audience how Martin’s tips helped her receive a whopping £95,000 extra.
He advised calling the Future Pension Center to make sure it is worth it in your case.
Who is eligible for pension credit?
If you reached pension age after April 6 2016 and you have enough qualifying National Insurance years (around 35 years) it may be worth checking.
The boost is worth an average of £3,500 a year, Martin said.
It is available for people who are over the state pension age, and who live in England, Scotland or Wales.
This is currently rising to 66 for both men and women.
It used to be the case that couples, where one person was over state pension age, could claim, but new rules now mean that both people in a couple must be over retirement age to apply.
This means if you’re single and move in with a partner who is younger than the state pension age, you will stop being eligible.
But if you’re already receiving pension credit under the old system it won’t stop unless your circumstances change.
To qualify, you’ll need to have a weekly income of less than £201.05 for single people or £306.85 for couples.
Your income is worked out taking into account various elements including:
Your state pensionAny other pensions you have saved, for instance, workplace or private pension savingsMost social security benefits, for example, carer’s allowanceAny savings or investments worth over £10,000Earnings from a job
The calculation does not include:
Attendance allowanceChristmas bonusDisability living allowancePersonal independence paymentHousing benefitCouncil tax reduction
If your income is too high to get pension credit, you may still get some savings so it’s worth checking.
How much can you get in pension credit?
There are two parts to the benefit and pensioners can be eligible for one or both parts – here are the current rates for the tax year:
Guarantee credit – tops up your weekly income to a guaranteed minimum level. This is £201.05 a week if you’re single and £306.85 a week for married couples.Savings credit – provides extra money if you’ve saved money towards retirement. You can get an extra £15.94 a week for a single person or £17.84 a week for a married couple.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
For instance, you can get either £61.88 a week or £72.31 per week for each child or young person you’re responsible for.
If you are disabled or care for someone who is disabled, you may get more.
For example, if you have a severe disability you could get an extra £76.40 a week or if you care for another adult you could get an extra £42.75 a week.
How do I apply?
You can start your application up to four months before you reach state pension age.
Applications for pension credit can be made on the government website or by ringing the claim line on 0800 99 1234.
You can get a friend or family member to ring for you, but you’ll need to be with them when they do.
You’ll need the following information about you and your partner if you have one:
National Insurance numberInformation about any income, savings and investments you haveInformation about your income, savings and investments on the date you want to backdate your application to (usually 3 months ago or the date you reached state pension age)
If you claim after you reach pension age, you can backdate your claim for up to three months.
Meanwhile, the DWP will be writing to thousands of households this summer inviting them to claim pension credit so keep an eye out.
Plus, a woman who was living on just £320 a month told The Sun how she is now £10,000 better off thanks to the benefit.
Martin’s ITV show returned tonight for a two-episode mini-series, handing out top personal finance tips.
He previously revealed “one of the best returns” possible for anyone saving for retirement.
He also revealed how to save £9 a pack on hay fever tablets.
The Sun also gave an inside look into the GMB star’s life with his glamorous, rarely-seen wife Laura Lewington.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]