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

Make sure your pension savings don't breach the lifetime allowance
Pensions

Make sure your pension savings don't breach the lifetime allowance

Don’t forget the lifetime allowance when reviewing your pension planning – breaching it could prove very costly, says David Prosser.
7 Jan 2022
How to track down your lost pension savings
Pensions

How to track down your lost pension savings

Some straightforward detective work could reunite you with pension savings from previous jobs that you may have mislaid.
20 Dec 2021
What to do if you still have a mortgage when you retire
Mortgages

What to do if you still have a mortgage when you retire

In the next few decades, many people will be paying back their home loans well into retirement. David Prosser explains their options.
7 Dec 2021
Making sense of the new minimum pension age rules
Pensions

Making sense of the new minimum pension age rules

The rules surrounding the minimum age at which you can start tapping into your retirement savings have been tweaked, but are still confusing. David Pr…
23 Nov 2021

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022