Make sure you don’t lose your pension credit

Time is running out for thousands of people to avoid missing out on a top-up to their pension income following changes to the rules introduced in May.

Pensioners going through their finances © iStockphotos

Pensioners going through their finances © iStockphotos

Time is running out for thousands of people to avoid missing out on a top-up to their pension income following changes to the rules introduced in May. Those affected have until 13 August to apply for pension credit. Otherwise they will lose the money for good.

The issue affects pensioner couples where one partner is eligible to claim pension credit paid to poorer pensioners to ensure they have a guaranteed minimum income but the other has not yet turned 65. Since May 15, couples have only been allowed to make their first claim for pension credit once both partners are aged over 65. However, those who were entitled to claim credit before the rules changed but hadn't done so were given three months' grace to make their application, even if they aren't eligible under the new system. The deadline for doing so is 13 August.

If you were already claiming pension credit before 14 May, you don't need to worry, even if your partner is not yet 65. These pensioners will continue to receive the benefit. But those who were eligible to claim but had not done so will lose the right to the money once the deadline passes they'll then have to wait for their partners to reach the age of 65.

If you're in doubt about your eligibility, check before it's too late. Government figures suggest around one million people entitled to the credit aren't claiming it. Call the government's Pension Credit claim line 0800 99 1234 for advice.

Recommended

The return of annuities for retirement income
Pensions

The return of annuities for retirement income

Rising annuity rates offer an improving alternative to income drawdown for those looking for an income in their retirement.
22 Jun 2022
High inflation means the end of the “4% rule” for retirees
Pensions

High inflation means the end of the “4% rule” for retirees

High inflation means that it’s time to reassess how much you withdraw from your pension each year if you don't want to run out of money .
14 Jun 2022
Transferring out of your final salary pension could cost you dear
Pensions

Transferring out of your final salary pension could cost you dear

Thinking about transferring out of a final salary pension? It could cost you a lot more than you might think, says David Prosser.
30 May 2022
Private pensions: act early to avoid a big inheritance tax bill
Pensions

Private pensions: act early to avoid a big inheritance tax bill

Frozen inheritance-tax thresholds mean HMRC is taking ever more in death duties. But there are steps you can take to avoid it, says David Prosser.
18 May 2022

Most Popular

UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
22 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022