Does having savings disqualify me from Pension Credit?
Short answer
No. Pension Credit has no upper savings limit. The first £10,000 of savings is ignored entirely; above that, every £500 counts as £1 a week of notional income, which reduces your award. You can hold significant savings and still qualify if your weekly income is below the guaranteed minimum.
Unlike Universal Credit, which cuts off at £16,000 of capital, Pension Credit has no hard savings limit. Many pensioners wrongly assume their savings rule them out and never claim — around one million eligible pensioners are estimated to be missing out.
How savings are counted
Guarantee Credit tops up your weekly income to £238.00 for a single person or £363.25 for a couple (2026/27). When your income is worked out:
- The first £10,000 of savings and investments is disregarded completely.
- Above £10,000, each £500 (or part of £500) is treated as producing £1 a week of notional income.
So £16,000 of savings, for example, adds just £12 a week of notional income to the calculation. If your State Pension, occupational pensions and that notional income still fall below the guaranteed minimum, Pension Credit makes up the difference. Occupational pension income counts in full, but having one does not disqualify you either — it simply reduces the top-up.
Why even £1 a week is worth claiming
Receiving any Guarantee Credit passports you to support often worth far more than the top-up itself:
- The Winter Fuel Payment (£200, or £300 if aged 80 or over) — now restricted to those on Pension Credit and other means-tested benefits
- Up to 100% Council Tax Support
- Free NHS dental treatment, eye tests and help with glasses
- Cold Weather Payments of £25 per cold spell, and the Warm Home Discount
- A free TV licence if you are 75 or over
The government estimates non-claimants miss out on an average of £3,500 a year. Check your position with the GOV.UK Pension Credit calculator, then claim by phone on 0800 99 1234, online or by post — claims can be backdated up to three months, and you can apply up to four months before you reach State Pension age. If you have a disability or care needs, an Attendance Allowance award can increase your Pension Credit further through the severe disability addition.
Related guides
Pension Credit Overview
Pension Credit is a means-tested benefit for people above State Pension age on a low income. It tops up your weekly income to a minimum guaranteed level and — critically — unlocks a range of other entitlements including the Winter Fuel Payment, full Council Tax Support, and free NHS dental treatment. Around one million eligible pensioners are estimated not to claim it.
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Pension Credit Underclaim: £1.5 Billion in Unclaimed Support
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Attendance Allowance is a tax-free, non-means-tested benefit for people over State Pension age who have a disability or illness and need help with personal care or supervision. Around 1.7 million people in Great Britain receive it, but many more are eligible and do not claim. If you are under State Pension age, the equivalent benefit is Personal Independence Payment.
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