Working pensioners may be missing out on thousands due to misunderstanding

Pension Credit offers a financial boost to those over the state pension age who are finding it tough to get by. However, a common misconception is that if you are working beyond the state pension age or have savings, you will not qualify.

This misunderstanding could be stopping individuals from claiming over £3,900 in Pension Credit payments, which is the average amount claimed from this benefit. This benefit serves as a gateway to a range of other discounts, freebies, and support that aren't always monetary.

Pension Credit consists of two components: Guarantee Credit and Savings Credit. The former considers your weekly earnings, which can come from employment, pensions, or even other benefits. Citizens Advice pointed out: "You can still be working, as long as your income isn't too high. Unlike the State Pension, you don't need a national insurance record."

To qualify, your income should be at £227.10 per week or lower if you're single, and £346.60 joint weekly income if you are in a partnership. Those earning more than this may still qualify if they meet other criteria such as having a disability or being a carer.

Your income includes:

• State Pension
• Other pensions
• Earnings from employment and self-employment
• Most social security benefits, for example Carer's Allowance

The following benefits are not counted as income:

• Adult Disability Payment
• Attendance Allowance
• Christmas Bonus
• Child Benefit
• Disability Living Allowance
• Pension Age Disability Payment
• Personal Independence Payment
• social fund payments like Winter Fuel Payment
• Housing Benefit
• Council Tax Reduction

If your savings are worth £10,000 or less, you may be eligible for Pension Credit. Every £500 in savings or investments you have over this amount will be counted as an extra £1 of income per week.

For instance, if you are a single pensioner with a weekly income of £200 and £11,000 in savings, the DWP will calculate your weekly income as £202 per week, making you still eligible for the benefit.

The Gov.uk website features a Pension Credit checker tool to help individuals identify if they might be missing out on thousands of pounds in support from the benefit.