As the cost of living in the UK continues to rise, it’s safe to say that many retirees need as much extra cash as they can get. But new data from the Department for Work and Pensions (DWP) shows that hundreds of thousands of them could be missing out on a crucial retirement fund top-up worth up to £1,900 a year!
So, what exactly is this top-up? Are you of those who are currently missing out? And, most importantly, how can you claim it? We have the answers.
[top_pitch]
What’s the £1,900 benefit pensioners are missing out on?
According to new data from the DWP, up to 850,000 families who were eligible for Pension Credit between April 2019 and April 2020 did not claim it.
In total, £1.7 billion of Pension Credit went unclaimed, which means that each eligible family missed out on an average of £1,900.
What is Pension Credit anyway?
Pension Credit is an income-related benefit from the government for people over State Pension age who are on a low income.
If your income is less than £177.10 for a single person and £270.30 for a couple (rising to £182.60 and £278.70 respectively from April), Pension Credit will top it up to that amount.
Your income includes State Pension, other pensions, earnings from employment and self-employment, as well as other social security benefits such as Carer’s Allowance.
You can get extra help if you are a caregiver, have a disability or are responsible for a child or young person.
For example, if you have a severe disability, you can receive a weekly top-up of up to £67.30 (rising to £69.40 in April). If you are a carer, you can get a top worth £37.70 (£38.85 from April).
Pension Credit can also act as a gateway to other forms of financial support including:
Free TV Licence for the over-75s (potentially saving £159 a year)
Council Tax reduction (up to 100%, potentially saving £2,000 a year)
Housing Benefit if your rent the house you live in
Help with NHS dental treatment, glasses and transport costs for hospital appointments
Cold Weather Payments (potentially worth £25 a week between November and March)
Warm Home Discount (worth £140 a year).
Support for mortgage interest if you own the property you live in.
[middle_pitch]
How can you claim this benefit?
The government has a Pension Credit calculator to help you find out whether you are eligible for Pension Credit. The calculator will also help you find out how much you can get.
If you are eligible, there are several ways to apply. The simplest is by calling the Pension Service on 0800 731 049. They will take your information and complete the application on your behalf. You can also apply online at gov.uk.
Or, you can also do it the old-fashioned way. Simply print out the Pension Credit claim form, or call the claim line to get one, then fill out and send it to the Pension Service.
To apply, you will need:
Your National Insurance number
Information about your income, savings and investments
Your bank account details
You can start your application up to four months before you reach State Pension age.
Think you might be eligible for Pension Credit? It could provide a much-needed boost to your retirement income. It could also open doors to other forms of financial help, so it makes sense to check your eligibility now!
The post 850,000 retired Brits missing out on this benefit worth £1,900 a year: are you one of them? appeared first on The Motley Fool UK.
Is this little-known company the next ‘Monster’ IPO?
Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.
Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.
The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.
But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.
Click here to see how you can get a copy of this report for yourself today
More reading
The BP share price sinks after shocking announcement
3 top penny stocks to buy in March!
4 fashion world side hustle ideas to help pay the bills
Revealed: the sectors and funds beating the market downturn for stocks and shares ISA investors!
4 easy ways to lose money when buying shares!
