DWP '£990.08' benefit that rewards pensioners who've saved for retirement
The benefit is designed to reward people who have saved up for retirement and could mean you are eligible to receive up to £990.08 per year - here's how to apply
by Lauren Haughey · The MirrorA financial expert has shone a light on a benefit that favours pensioners who've managed to save for their retirement. It's a Government-issued credit that's based on a 'qualifying income', meaning you need to be above a threshold to bag extra support.
Becky O'Connor, director of public affairs at PensionBee, is among various experts to praise the essential Department for Work and Pensions (DWP) benefit, explaining that it's a way to give back to those who've made 'modest retirement savings'. "It rewards people who have some extra savings or income," she told The Telegraph.
"This may seem a bit counterintuitive – a benefit that pays more to people who already have more – but it’s a way of incentivising and rewarding those who’ve made modest retirement savings." So, what is the benefit?
Issued by the DWP, the support in question is referred to as 'Savings Credit'. If you're eligible and single, you may receive up to £17.01 a week, or £19.04 a week if you're with a partner. That means you could receive up to a staggering £884.52 or £990.08 per year. It's a means-tested benefit designed to help with general living costs.
To qualify, you'll need to have reached State Pension age before 6 April 2016, and you'll also need to have saved up some money in a personal or workplace pension for retirement. Specifically, this will need to be above 'the threshold amount of £189.80' if you're single or '£301.22 if you're in a couple', according to Martin Lewis' MoneySavingExpert (MSE).
The Telegraph also adds: "For every £1 of total income you have above the threshold [...] you get a savings credit amount of 60p. This is up to £17.01 a week for a single person, and up to £19.04 for a couple."
Importantly, this differs to 'Guarantee Credit' - the pension benefit designed for people with much lower income. You may be eligible for this if your weekly income is less than £218.15 if you're single or £332.95 if you're in a couple.
To apply, head to the Government's website where you can fill in an online form. You'll need your National Insurance number, banking information and income details to do this.
If you'd rather apply on the phone you can call 0800 99 1234, or print out a Pension Credit claim form to apply by post. The envelope should be addressed to 'Freepost DWP Pensions Service 3'.
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