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With the media attention surrounding the pensions crisis and the pensions gap over recent years, most of us have heard the warnings about the need to save more for retirement. However, for some people it’s too late. Already retired, they’re finding themselves without enough money to get by, especially as the state pension only provides a very basic income. However, help is at hand in the form of various government benefits for those who are unable to make ends meet. Here’s a guide to benefits for retired people. The government does provide a pension that is available to everyone, although there are various qualifying criteria that must be met and it’s awarded on a sliding scale depending on how many of these criteria you meet. Currently the state retirement age from which the pension can be claimed is 65 for men and 60 for women (which will be brought up to 65 over the next couple of decades in line with the male pension age). To be able to claim, you (or your partner) must also have built up enough qualifying years of national insurance contributions, which means that you will need to have been in almost continual employment for most of your adult life. However, many people are out of work for short or sometimes long periods of time for various reasons. If you’ve not been working because you have been raising a family, looking after relatives, or unemployed and receiving unemployment benefit, you’ll still be credited with national insurance contributions to ensure you don’t lose out. However, if not, you may not have enough national insurance contributions to qualify even for the minimum pension. You need at least one quarter of the necessary qualifying years to claim the minimum. If you have more than the minimum but not the maximum, your pension entitlement will be worked out according to a sliding scale. Pension credit If you have a very small retirement income, you could be eligible for supplements in the form of pension credits. These are available to either individuals or couples and are calculated in two parts. The first part is known as the guarantee credit. If you’re over 60, single and have a weekly income under £115, or if you’re a couple over 60 with a weekly income under £175, you’ll receive a guarantee credit to take you up to this level. For savings credits, the minimum qualifying age is 65 and the weekly income threshold is £160 if you’re single or £235 if you’re a couple. If you receive less than this per week, you’ll be credited with £18 (individual) or £24 (couple). You can opt to have the credits deposited automatically into the bank to save you from having to cash a cheque or collect cash from the post office. People receiving pension credits may in some circumstances be eligible to claim other benefits – for example assistance with local authority tax or rent. As pension credits aren’t considered as part of your income, they won’t be included in any calculations if you apply for other benefits. Over 80 pension Another benefit designed for people on very low incomes, this pension is available to those over the age of 80. It can be claimed by people who are not entitled to the state pension or whose weekly state pension payment is under £50. Unlike pension credits, the Over 80 pension is classed as income in terms of calculating eligibility for other benefits. Cold weather fuel assistance Winter fuel bills can be expensive, but it’s in old age that people need it most. For this reason, the government has a scheme to assist older people on low incomes with the heating of their homes. The qualifying winter period is November to March inclusive. If during this time the temperature reaches freezing point or lower for a week or longer, you will get a payment. (It’s automatically given to you if you are already receiving other benefits such as pension credits.) Winter fuel allowance Another benefit for helping people to pay their fuel bills, winter fuel allowance is available to everyone over 60 (although entitlement varies according to your personal financial situation). The most you can claim is £300. If you already claim the state pension, it’s paid alongside this. Otherwise, you should contact the winter fuel allowance division of the Pension Service to arrange payment. Travel pass Administered by local authorities, these passes are available to everyone over the age of 60. They entitle the bearer to free nationwide bus/coach travel at non-peak times. Give your local authority a call and ask them to send you an application. TV licence reductions Households with at least one resident aged over 75 qualify for a television licence free of charge. Alternatively, if you’re over 60 and live in a care home, you’re entitled to a TV licence for the reduced charge of £5. This has to be arranged through the management of the care home. This article is copyright protected and is not for republishing |
