PC10 Pension Credit - Communities and Local Government

How do we work out Pension Credit?However, if your net income is more than your appropriate amount,work out Amount B. This is 40% of the difference between your totalincome and your appropriate amount. Take Amount B from Amount A.What is left is your savings credit.ExamplesThese examples show how Pension Credit is worked out. The figuresused apply from April 2005. Rates increase each April and can befound in leaflet GL23 Social security benefit rates.The rates used in these examples are:Standard amount: Single person £109.45Couple £167.05Savings credit starting point Single person £82.05Couple £131.20Maximum Amount A Single person £16.44Couple £21.51Example 1Jean is 64 and widowed. Her State Pension is £82.05 and she has anoccupational pension of £52 a month (£12 a week). Her appropriateamount is simply the standard amount as she is not entitled to anyextra amounts.Jean’s appropriate amount is £109.45. Her income is £94.05, so sheis entitled to a guarantee credit of £15.40 a week. She is not entitledto a savings credit because she is under 65.Jean’s Pension Credit is £15.40.When Jean is 65, she will also be entitled to a savings credit, as shehas qualifying income above the savings credit starting point.The difference between her qualifying income (£94.05) and thesavings credit starting point (£82.05) is £12.00, and 60% of this is£7.20. This is less than the maximum, so Amount A will be £7.20. Asher income is less than her appropriate amount she will be entitledto a savings credit of £7.20.When Jean is 65 her total Pension Credit will be £22.60.45