Pension Credit Savings Credit is an additional payment that rewards some older pensioners who have saved money towards their retirement. Although it is now closed to most new applicants, some people can still receive it if they reached State Pension age before 6 April 2016 and meet the qualifying conditions.
Many people are unaware that Savings Credit still exists for a limited group of pensioners. If you qualify, it can increase your weekly income and may also help you access additional financial support.
This guide explains everything you need to know about Pension Credit Savings Credit, including who qualifies, how much you could receive, eligibility rules, how to claim and common mistakes to avoid.
Pension Credit Savings Credit is a part of Pension Credit that provides an extra payment to certain older pensioners who made modest retirement savings. It is only available if you or your partner reached State Pension age before 6 April 2016 and meet the Government’s eligibility criteria.
If you reached State Pension age on or after 6 April 2016, you cannot usually claim Savings Credit.
Savings Credit was introduced to reward people who had saved towards retirement rather than relying entirely on means tested benefits.
Unlike the Guarantee Credit part of Pension Credit, Savings Credit is designed to recognise retirement income from sources such as:
It acts as a small additional payment rather than replacing your income.
Although new eligibility largely ended in 2016, many pensioners continue receiving it today.
| Pension Credit Element | Purpose |
|---|---|
| Guarantee Credit | Tops up weekly income to a minimum level |
| Savings Credit | Rewards certain pensioners who have retirement savings |
Some people receive:
You may qualify if:
Most people reaching pension age after April 2016 cannot receive Savings Credit.
Eligibility depends on several factors.
You (or in some situations your partner) must have reached State Pension age before 6 April 2016.
Normally you must:
The Government compares your income against Savings Credit thresholds.
Your total income may include:
Each claim is assessed individually.
Savings Credit is means tested.
The Government looks at income from several sources before calculating entitlement.
Income that may be considered includes:
Some income may be disregarded or treated differently.
| Income Source | Usually Considered |
| State Pension | Yes |
| Private pension | Yes |
| Employment earnings | Usually |
| Rental income | Usually |
| Certain disability benefits | May be ignored |
Each case is different.
Yes.
Savings and capital may affect how your entitlement is calculated.
Examples include:
Unlike some benefits, having savings does not automatically prevent you from qualifying.
Instead, the Government may assume a notional income from capital above the relevant threshold.
| Type of Savings | Usually Counted |
| Cash savings | Yes |
| Stocks and shares | Yes |
| Savings accounts | Yes |
| National Savings products | Usually |
| Main home | Usually ignored |
Savings Credit is usually a relatively small weekly payment.
The exact amount depends on:
The Government reviews benefit rates each year.
You cannot work out entitlement simply by looking at your income because the calculation includes several factors.
| Situation | Possible Outcome |
| Single pensioner with modest retirement savings | May receive Savings Credit |
| Couple with qualifying pensions | May receive Savings Credit |
| Pension age after April 2016 | Usually not eligible |
Savings Credit forms part of a Pension Credit claim.
You do not usually submit a separate application.
Applications can normally be made:
During the application you will provide details about:
The Department for Work and Pensions will assess your entitlement.
Having accurate information ready can speed up your claim.
You may need:
Keeping documents up to date reduces delays.
Many eligible pensioners miss out because they assume they cannot qualify.
Common mistakes include:
Many people wrongly believe having savings means they cannot receive Pension Credit.
Always declare all pensions accurately.
Tell the Department for Work and Pensions if your circumstances change.
Savings Credit exists specifically because some people saved towards retirement.
Benefit rules and payment rates can change.
Margaret reached State Pension age before April 2016.
She receives:
After assessment she qualifies for Savings Credit because her retirement income meets the qualifying rules.
David reached State Pension age in 2019.
Although he has retirement savings, he cannot receive Savings Credit because he reached State Pension age after the qualifying date.
John and Anne reached State Pension age before April 2016.
Together they receive:
Following assessment they qualify for Pension Credit including Savings Credit.
Yes, but only for a limited group of pensioners who reached State Pension age before 6 April 2016.
Generally no, unless they meet the transitional eligibility rules.
Yes. Guarantee Credit tops up income to a minimum level, while Savings Credit rewards certain retirement savings.
Not necessarily. Savings are assessed, but they do not automatically prevent entitlement.
Yes, if they meet the qualifying rules.
Pension Credit itself is not taxable.
Payment rates may change following Government benefit reviews.
Existing claims normally continue while you remain entitled, although you must report relevant changes.
Many Pension Credit recipients may also qualify for Housing Benefit depending on their circumstances.
You should report changes promptly because they could affect your entitlement.
Yes. In fact, private pension income is one of the reasons Savings Credit was originally introduced.
Receiving Pension Credit may open the door to additional help.
You may also qualify for:
Many people who receive Pension Credit are entitled to several forms of assistance but do not realise it.
| Benefit or Scheme | Purpose |
| Guarantee Credit | Increases weekly income |
| Housing Benefit | Helps with rent |
| Council Tax Reduction | Reduces council tax bills |
| Winter Fuel Payment | Helps with winter heating costs |
| Warm Home Discount | Reduces electricity bills |
| Attendance Allowance | Supports older people with care needs |
This article has been reviewed against current UK Government guidance relating to Pension Credit and Savings Credit eligibility.
Benefit entitlement depends on your individual circumstances, including your age, income, savings, household composition and pension arrangements.
Government benefit rates, qualifying conditions and payment thresholds are reviewed regularly. Always ensure you are using the latest official guidance when making a claim or planning your finances.
Useful sources of official information include:
These organisations provide free and impartial information about Pension Credit, retirement income and related financial support.
Understanding What is Pension Credit Savings Credit can help older pensioners maximise their retirement income and ensure they are not missing out on valuable financial support.
Although Savings Credit is no longer available to most new pensioners, thousands of eligible people continue to receive it because they reached State Pension age before 6 April 2016 and satisfy the qualifying rules.
If you think you may qualify, it is worth checking your entitlement even if you have savings or receive a private pension. Many people wrongly assume they are ineligible when, in fact, they could receive extra weekly income or gain access to additional forms of support.
Benefits Advice UK provides free information to help people better understand the UK benefits system. Always check the latest Government guidance before making financial decisions.
Information on this site is based on official UK guidance.
About our information and sources
Sign up for our newsletter to receive updates when there are changes to Universal Credit.
