Unless youve managed to build up a large private pension or have a great deal of savings, its not always easy to get by in retirement when youre no longer earning. There are various ways in which the government can help give people of pension age enough money to live on heres a concise guide to some of the main benefits.
State pension this is available to men over 65 and women over 60 (increasing to 65 by 2020), although eligibility for the full state pension depends on whether you or your spouse/partner have accumulated sufficient qualifying years through national insurance contributions (NICs). Youll need to have worked approximately 90% of your adult working life in order to do so. People who have been out of work to bring up children or care for other family members are given Home Responsibilities Protection to make up for lost NICs, and people who receive jobseekers allowance and income support will also be given credits while claiming benefit. If you dont have enough NICs to be eligible for the full basic state pension, but have at least 25% of the qualifying years, youll receive an amount somewhere between the minimum and the maximum. If you have less than 25%, you normally wont be eligible to claim any state pension, but you may be able to get financial help in other ways, such as pension credit or the Over 80 pension.
Pension credit you may qualify to receive pension credits to top up your income if it is very low. Pension credits are made up of two elements: guarantee credits and savings credits. Guarantee credits are available to single people over 60 who have an income of less than 114.05 per week, or couples over 60 with an income of less than 174.05 per week. If eligible, youll receive top-ups to bring your income up to these levels. Savings credits are available to individuals over 65 whose weekly income is less than 159 or couples over 65 whose weekly income is less than 233. If you qualify, youll receive 17.88 per week if youre single or 23.58 if youre a couple. Payments can be made directly into your bank account. Other benefits are not taken into consideration when calculating eligibility, and you may also qualify to receive other benefits if youre on pension credits, such as housing and council tax benefits.
Over 80 pension if youre over 80 and on a low income because you dont get the basic state pension or receive less than 50.50 per week from your state pension, and as long as youve lived in the UK for at least 10 years up to your 80th birthday, youll be able to claim an over-80 pension, which will top up your income to 50.50 per week. It is considered taxable income and will be included as part of your income if you apply for other benefits. Again, you can receive payments directly into your bank account.
Cold weather payments it can be very expensive trying to keep your home warm enough during periods of extremely cold weather. If youre on a low income, the government can provide cold weather payments to help you pay your fuel bills. If the temperature drops to 0 degrees Celsius or below for seven days in a row between 1st November and 30th March, youll automatically receive payments if youre eligible normally when youre also receiving pension credit.
Winter fuel allowance people aged over 60 can claim winter fuel allowance to help heat their home. The amount varies depending on personal circumstances, up to a maximum of 300. Youll automatically receive your allowance with your pension payments if you receive a pension. If youre not receiving a pension, youll need to contact the government Pension Service in order to apply. It has a winter fuel payment department for processing claims.
Bus pass when you reach 60 youll be able to apply for a bus pass from your local council, allowing free off-peak travel across the country. The application process varies between council areas. Get in touch with your local council to find out how to apply.
Free or concessionary television license everyone over the age of 75 is entitled to a free television license, which covers anyone else also living at the same address. People aged 60 or over living in residential care homes can apply for a concessionary license fee of 5 through the administrator of care home in which they live.
Author: Benedict Rohan Website: http://www.mortgagenation.co.uk Benedict Rohan works as a freelance finance writer. Commercial Mortgage, Homeowner Loans, Remortgages
Private Companies and Employee Health Benefits
The basic employee benefits have now become mandatory for any employer to make available to the employees. Employee health benefits are made available to permanent employees of the private sector companies as well as government organizations. However...
Planning For Your Retirement
Are you ready for retirement? For most hard working individuals, retirement doesnt seem like it is close enough. But, for those that realize the amount of money needed to be well off through the later stages of life, there is nothing more important...
Civil Service Retirement System
The Civil Service Retirement System (CSRS) began in 1920 and has given disability, survivor and retirement benefits for the majority of civilian employees in the Federal government until 1987 when the new Federal Employees Retirement System (FERS) wa...
Public Employees Retirement System
For every employee who has worked for years, retirement is something they enthusiastically look forward to. The vision of just being relaxed throughout the day, doing things at their own way and at their own pace, is a feeling of complete satisfactio...
Saving for Retirement
The government wants you to save for retirement. When the government wants you to do something they encourage you by giving you a tax break to do what they want. When it comes to retirement they do this by allowing you to skip or defer paying taxes o...
Always Keep In Mind Your Social Security and Retirement
Majority of the people prefer most common options of Living a peaceful life after retirement with traveling, taking classes, or either being idol, while the other segment includes those who feel negated and depressed due to the sudden change that is ...
Railroad Retirement Rewards Years of Service
For people who have dedicated a substantial part of their life towards service in railroad, Railroad retirement is one of the infringements available. The railroad retirement dues are made available to people who have worked, driven and have performe...
Individual Retirement Account Services
Retirement is a stage in life that one should be ready for. Those who want to live comfortably through the later stage of their life must consider a retirement plan as early as now. And one of the best ways to invest for retirement is by looking into...
After Fifty Everyone Should Be Planning A Budget For Retirement
It is not a subject that most people want to broach, but when we get older and that means substantially older, we should all be planning a budget for retirement. Age fifty is the ideal age to begin thinking about the planning stages of budgets for re...
The Social Security Retirement Age Proportional to Year of Birth
The basic criteria for Social Security Retirement Age are the individuals birth date. Studies have revealed a fact that these days are more health conscious and thus life spans have increased. And as a counter reaction Social Security Retirement Age ...
