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Savings Credit

As part of the Pensions Act 2014, the Savings Credit element of Pension Credit is no longer available for individuals reaching their SPA on or after 6 April 2016

The purpose of the Savings Credit is to reward people who have made some additional provision for their retirement, such as savings or a private pension.

The maximum amount of Savings Credit that can be paid in 2018/19 is £13.40 per week for an individual and £14.99 per week for a couple.

In summary, Savings Credit may be payable if an individual or one of a couple:

  • Has reached age 65
  • Reached the SPA before 6th April 2016
  • Was entitled to Savings Credit before 6th April 2016
  • Is entitled to Savings Credit at all times after 6th April 2016

Question - Use Your Note Taker To Jot Down Ideas / Calculations

Which of the following descriptions best describes Pension credit?

a) A taxable, non-means tested benefit that is dependent on an individual’s NIC record.

b) A tax-free, non-means tested benefit that is dependent on an individual’s NIC record.

c) A taxable, means tested benefit that is not dependent on an individual’s NIC record.

d) A tax-free, means tested benefit that is not dependent on an individual’s NIC record.

D)

Pension Credit is a tax-free, means tested benefit that is not dependant on an individual’s NIC record.