The state pension is something which many people rely on during their retirement, once they’ve reached state pension age. And, for some people, tax-free pension credit can help to make life in their later years easier. Not everyone will be entitled to receive this particular payment however, as pension credit is an income-related benefit. It’s made up of two parts, known as Guarantee Credit and Savings Credit.
Guarantee Credit tops up a person’s weekly income.
For a single person to be eligible, this figure must be below £167.25, while the weekly income of a couple must be below £255.25.
The Guarantee Credit is a top up amount which will ensure your weekly income then meets these figures, depending on which circumstances apply to you.
Meanwhile, Savings Credit is an additional payment available for those eligible and who have saved some money towards their retirement - such as via a pension.
At the moment, a single person who is eligible will be paid up to £13.73 per week via Savings Credit.
Couples eligible for Savings Credit will get up to £15.35 per week.
State pension UK: Changes to pension credit rules will soon come into effect (Image: GETTY)
Changes to pension credit
