Archive Website of the UK government

Please note that this website has a UK government accesskeys system.

Public services all in one place

Main menu

Wednesday, 3 October 2023

Examples of Pension Credit

This page gives examples that explain how Pension Credit is calculated depending on age and circumstances. Read these examples to get a better understanding of how Pension Credit applies to a real-life situation.

Pension Credit rates used in examples

The following examples show how much Pension Credit different people might get.

The rates used in the examples are:

Standard amount - this is the amount that Guarantee Credit will top your income up to. This amount may be more if you are severely disabled, are a carer or have housing costs such as mortgage interest payments.

The current rates for the standard amount of Guarantee Credit are:

  • single person £142.70
  • couple £217.90

Savings Credit starting point – this is the point at which you start to build up Savings Credit.

The current Savings Credit starting points are:

  • single person £111.80
  • couple £178.35

Savings Credit rates – this is the maximum amount of Savings Credit

The current Savings Credit rates are:

  • single person – up to £18.54
  • couple – up to £23.73

Example one

Jackie is single, aged 62 and owns her own home. She has a State Pension of £107.45. She has no other income. Her savings are £5,000.

Jackie will get Guarantee Credit of £35.25 a week, bringing her total weekly income up to £142.70. Her savings of £5,000 are ignored because they are below £10,000.

Because Jackie is 62 she can get Guarantee Credit only.

Because Jackie gets Guarantee Credit she will get full Council Tax Benefit, and help with other things like dental fees.

Example two

Mary and Frank are both 75, they own their home and have income of £230.08 a week, as follows:

  • basic State Pension (Mary) £107.45
  • basic State Pension (Frank) £64.40
  • personal pension (Mary) £54.23
  • savings of £12,000 (£1 of income for every £500 of savings is counted if they have over £10,000, which for £12,000 totals £4)

As Mary and Frank’s income is over £217.90 they cannot get the Guarantee Credit but they are entitled to £18.86 Savings Credit.

Mary and Frank will get Pension Credit of £18.86 a week, which brings their weekly income to £248.94.

Example three

Jack is 63 and gave up full-time work eight months ago. He lives alone in his own home and earns £85 a week from a part time job.

Only £80 is counted as income for Pension Credit purposes and £5 of Jack's earnings is ignored. Jack has no other income or savings.

Jack will get Guarantee Credit of £62.70, which brings his total weekly income up to £147.70.

Jack cannot get Savings Credit as he is only 63, but he may be entitled to Savings Credit when he reaches 65.

Example four

Louise is 75, lives alone and is severely disabled. She has savings of £9,000 and gets £184.90 from the following:

  • basic State Pension £107.45
  • Attendance Allowance £77.45

Louise’s savings are ignored as they are less than £10,000. Her Attendance Allowance is also ignored when working out her Pension Credit.

So Louise will get Pension Credit of £93.45 a week (this includes an extra £58.20 a week because she is severely disabled). This brings her total weekly income up to £278.35.

Louise cannot get Savings Credit because her qualifying income (£107.45) is lower than the Savings Credit starting point of £111.80 for a single person. Her Attendance Allowance does not count as qualifying income towards Savings Credit.

Example five

Denis was 60 on 7 July 2011. He currently gets Income Support of £71.00 a week and has no other income.

He will continue to get Income Support until he reaches the minimum qualifying age for Pension Credit. This will be on 6 November 2023 when he will be 61 and 4 months. At this time his total weekly income will increase to £142.70 if his circumstances remain the same.

Additional links

Simpler, Clearer, Faster

From 17 October, GOV.UK will be the best place to find government services and information

Being enrolled into a workplace pension

Starting from October 2012, millions of workers will be enrolled into a workplace pension

Access keys