UK State Pension and Pension Credit

[SwingsitlikeHogan]

Just trying to get my head around this for a.n.other who is reaching retirement age, but not sure I’ve got it right.

Reading the UK Gov pensions website the full uk state pension is £203/week if you have the necessary number of qualifying years of NI contributions, and if you have less than ten qualifying yrs you don’t qualify for any. In the latter situation you qualify for Pension Credit, this is up to £201/week; is means tested and reduced slowly if and as the individuals savings exceed £10,000.

So, in extremis, if I have no income; have paid no NI contributions, and declare savings of less than £10k, I will get £2/week less than had I a full qualifying years record. I also understand that if I receive PIP that is not counted as income so the Pension Credit I receive is on top of that PIP.

Any pensions experts out there able to confirm or correct my understanding.

 

[jim8flog]

Simple understanding of the last bit
PIP is a benefit for those disable enough to be eligible for it and replaced the old Disabled Living Allowance. It is not a payment for food rent etc hence it not being taken in to consideration for Pension Credit.

One important actor that I have read is that PIP may need to be reapplied for during pension age

My understanding of Pension Credit is that it is considered to be the least amount you need to live* on so if there is no other source of income and less than £10k capital you will get the full amount .

Pension Credit tops up any existing income so that it reaches the figure considered by the government to be the minimum you need to live on.

* Bearing in mind that if you receive it it opens the door for other benefits.

 

[SwingsitlikeHogan]

Simple understanding of the last bit
PIP is a benefit for those disable enough to be eligible for it and replaced the old Disabled Living Allowance. It is not a payment for food rent etc hence it not being taken in to consideration for Pension Credit.

One important actor that I have read is that PIP may need to be reapplied for during pension age

My understanding of Pension Credit is that it is considered to be the least amount you need to live* on so if there is no other source of income and less than £10k capital you will get the full amount .

Pension Credit tops up any existing income so that it reaches the figure considered by the government to be the minimum you need to live on.

* Bearing in mind that if you receive it it opens the door for other benefits.

TY for confirming my thoughts - and pointing out the possibility of having to reapply for PIP…that I didn’t appreciate. Though tbh if PIP isn’t for food or rent etc I’m not sure what it’s for.

 

[jim8flog]

TY for confirming my thoughts - and pointing out the possibility of having to reapply for PIP…that I didn’t appreciate. Though tbh if PIP isn’t for food or rent etc I’m not sure what it’s for.

It is the name Personal Independence Payment, it is help towards paying for the additional care a disabled person might need, necessary aids in the home a non disabled would not need and (if they qualify for it) help with additional cost of transport (part of it replaced the old Mobility Allowance).

 

[stefanovic]

Have had experience of this myself and it is confusing.
The Citizens Advice have all the up to date information, so just go there.

 

[SwingsitlikeHogan]

It is the name Personal Independence Payment, it is help towards paying for the additional care a disabled person might need, necessary aids in the home a non disabled would not need and (if they qualify for it) help with additional cost of transport (part of it replaced the old Mobility Allowance).

Right. Got it So an elderly person may qualify for Attendance Allowance but not for PIP, but if the individual has a disability they might qualify for AA topped up by PIP.

Anyway. More research required plus maybe also a call to Cit Advice.

 

[Hobbit]

As a starter…the pensions page

508 results found for Pension credit - Search

www.citizensadvice.org.uk

 

[SocketRocket]

The full State pension is only paid to people reaching pension age who were born after April 1951. Pensioners who were born before this date get the old state pension which is now around £50 a week less.

 

[doublebogey7]

The full State pension is only paid to people reaching pension age who were born after April 1951. Pensioners who were born before this date get the old state pension which is now around £50 a week less.

And even then only those who paid the contacted out rate of NI for the full 35 years. Though if you have a shortfall its well worth making your contributions up, pay back is usually under 4 years