State Pension
State Pension is a benefit for people of state pension age. The amount you get is based on your national insurance contributions. State pension age used to always be 60 for a woman and 65 for a man. However, state pension age is gradually increasing. If you are a woman born on or after 6 April 1950, you will no longer be able to claim a state pension age at the age of 60 and if you are a man born on or after 6th April 1959 you will no longer be able to claim a state pension at the age of 65. You can work out the exact date of when you will reach your state pension age by using the state pension age calculator on the Directgov website. Go to: www.direct.gov.uk or contact us for advice.
You do not have to have stopped working in order to get State Pension. You do not have to claim it as soon as you reach state pension age. If you prefer, you can wait and receive it later, either as a lump sum with your normal weekly pension or as an increased weekly rate of pension.
The amount you get depends on how much national insurance you have paid or been credited with over your working life. If you have not paid enough national insurance contributions yourself, you may be able to get some State Pension based on your husband, wife or civil partner’s national insurance contributions. If you are 80 or over, you may be able to get some State Pension even if you have not paid enough national insurance contributions.
It is possible for parents and carers to claim national insurance credits if you spend time caring for a child under 12 or a disabled adult.
The government has also introduced a national insurance credit for grandparents who spend time caring for children so that parents can work. Grandparents will be able to claim the credit for the 2011/12 tax year in arrears from April 2012.
The Pension Service should contact you before you reach state pension age and explain how you can claim State Pension. If they do not get in touch, you should contact the State Pension claimline on: 0800 731 7898.
Pension Credit
Pension Credit is made up of two parts, a guarantee credit and a savings credit. You may be entitled to either part, or both. You can claim Pension Credit whether or not you are still working. You do not need to have paid any national insurance contributions.
Guarantee Credit
This is designed to ensure a minimum income for older people. To be eligible, you or your partner must be aged above the pension credit qualifying age. This was previously 60 years, but over time it is gradually increasing in line with the women’s state pension. You will only be entitled to guarantee credit if your income is below a certain level. Only certain types of income count for Pension Credit and not all your income will be taken into account. Some income will be assumed from any savings above £10,000. If you are on guarantee credit, you will get maximum Housing Benefit and Council Tax Benefit. If you have a mortgage or home loan, you may be able to get an extra amount to help with your mortgage interest.
Savings Credit
The savings credit is for people who have a small amount of their own income or savings. To be eligible, you or your partner have to be at least 65 years of age. The award will be based on how much your income is over a certain threshold. However, if you have above a certain level of income, you will not be entitled to receive payments.
You should apply for Pension Credit by phoning the national telephone helpline on 0800 99 1234. You can also download an application form from the Directgov website at www.direct.gov.uk.
