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

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

Pensions drawdown: don't take too much money out of your pension fund
Pensions

Pensions drawdown: don't take too much money out of your pension fund

New evidence suggests people are depleting their pensions too quickly – and they risk running out of cash in retirement.
14 Oct 2020
Pandemics, politicians and gold-plated pensions
Pensions

Pandemics, politicians and gold-plated pensions

As more and more people lose their jobs to the pandemic and the lockdowns imposed to deal with it, there’s one bunch of people who won’t have to worry…
12 Oct 2020
SSAS: how a niche pension product is bolstering small businesses
Pensions

SSAS: how a niche pension product is bolstering small businesses

Small business owners struggling with the effects of the Covid-19 pandemic are increasingly turning to a novel type of pension plan that gives them mu…
12 Oct 2020
The MoneyWeek Podcast: Lockdowns, layoffs and public-sector pensions
UK Economy

The MoneyWeek Podcast: Lockdowns, layoffs and public-sector pensions

Merryn and John discuss the effects of lockdowns on the economy, particularly on the private sector where already financially fragile workers are laid…
9 Oct 2020

Most Popular

How will we repay our vast debt pile? Do we even need to?
Sponsored

How will we repay our vast debt pile? Do we even need to?

In his recent articles looking at different aspects of the fixed-income investing world, David Stevenson looked at inflation. Today he looks at a clos…
19 Oct 2020
Buying bitcoin could be the best way to play the remote working boom
Bitcoin

Buying bitcoin could be the best way to play the remote working boom

The coronavirus pandemic has accelerated the move to home working, flexible employment practices and the rise of the “digital nomad”. One of the best …
21 Oct 2020
Negative interest rates and the end of free bank accounts
Bank accounts

Negative interest rates and the end of free bank accounts

Negative interest rates are likely to mean the introduction of fees for current accounts and other banking products. But that might make the UK bankin…
19 Oct 2020