The state pension is something many retired people in the UK claim. The sum of money that each pension is entitled to will vary, and unlike other types of pension, it comes directly from the government. However, a change to the state pension credit rule was recently unveiled. And, this could lead to some Britons being £7,000 per year worse off.
So, who will be affected by the change, and when will it be implemented?
Couples who are of different ages are set to be hit by the upcoming change.
Once implemented, couples eligible for pension credit will only be able to claim the fund once the youngest of the two reach the state pension age.
And, while this may not dramatically affect partners who are of a similar age, those who do have a difference in age could end up without a significant portion of the money they were expecting.
The change will come into effect on May 15, 2019.
So, following this date, what are the criteria a couple must meet in order to get pension credit?
According to gov.uk, both you and your partner must have reached pension credit qualifying age.
That’s in addition to one of you having reached this age, and claiming housing benefit for you as a couple.
If you’re not eligible, the government website advises that you may apply for universal credit instead.
However, it may be good news for couples are are already getting pension credit.
That’s because, after May 15, you will continue to get pension credit.
But, if your circumstances change and your entitlement therefore stops, you would no longer be able to get pension credit again until you or your partner become eligible under the new rules.
This could mean that in a full year, mixed age couples end up £7,000 worse off through the universal credit system, rather than the pension credit system, iNews reported.
What is pension credit?
Pension credit is an income-related benefit which is made up of two parts: guarantee credit and savings credit.
The former is a top up fund of your weekly income, if this is below £163 for a single person, or £248.80 for a couple.
On the other hand, savings credit is an extra payment for people who saved some money towards their retirement – such as via a pension.
For a single person, this could mean you get up to £13.40 extra per week, while couples could get up to £14.99 per week.
READ MORE: The ‘sneaky’ change to state pension credit age rules means you might be £7,000 a year worse off