Pension credit calculator explained

Pension credit is extra money you may be able to claim from the government if you’ve reached state pension age and are on a low income. It helps you bring your weekly income up to the minimum amount, and is a tax-free benefit worth up to £1,000 a year. However, different factors come into play when calculating pension credit, which can make it confusing. On this page, you’ll learn more about pension credit calculators, how they work and how you can calculate how much your pension credit could be worth.

A pension credit calculator makes it simple to calculate how much you might earn if you’re eligible to claim pension credit. The pension credit calculator, which you can find on the government website, essentially tells you how much extra income you may be entitled to when you retire. 

This calculation includes income from defined benefits and defined contribution schemes. Using this pension credit calculator, you’ll be able to find out what your retirement income will be, so you can work out how you’ll be able to live when you stop working.

You’ll need to input your financial details into the pension credit calculator, so it can determine if you’re eligible to claim pension credit. 

If you’re eligible, you’ll proceed to determine your income, pension contributions, lump sum and other income sources. Once you’ve input these details, your results will give you an estimate of what you might receive in pension credit. 

To calculate your pension credit, you’ll need to have reached the pension credit age, which is the same as the state pension age, which is currently 66 for both men and women. You’ll also need to have the following details to hand to enter into the calculator:

• Your current accommodation (a mortgaged home, rented accommodation, care home, etc.)
• How much you’re paying to live in your accommodation, including service charges
• Earnings, benefits and any pensions you receive
• Any savings and investments you have 

Once you’ve filled in the required information, the pension credit calculator will determine the estimated amount you may be able to receive per week in pension credit. 

It can be complicated to work out your pension credit on your own. For this reason, we suggest using the UK government pension credit calculator, which calculates how much pension credit you may be entitled to receive. 

Pension credit consists of two parts – guarantee credit and savings credit. Some people may qualify for both of these elements, while others may only qualify for one.

Guarantee credit tops up your weekly income to a minimum amount set by the government. For 2022/23 this figure is set at £182.60 per week if you’re single (up from £177.10 in 2021/22) and £278.70 for couples (up from £270.30 in 2021/22).

If your income is too high to receive guarantee pension credit, you may still be eligible for savings pension credit. 

For savings pension credit, the amount you receive will depend on whether you have more or less than the weekly income, which for the 2022/23 tax year is either £158.47 if you’re single or £251.70 if you’re a couple. 

If your income is more than these amounts, you may receive savings pension credit, which is set at a maximum of £14.48 per week if you’re single or £16.20 for couples.

The following factors affect how you may be able to use the government’s pension credit calculator:

• If you or your partner is deferring your state pension
• If you own more than one property in the UK
• If you’re self-employed
• If you currently have housing costs (excluding mortgage repayments and rent) that are covered by housing benefit 

If you can’t use the online calculator, you can find out about your pension credit by calling the Pension Service helpline on 0800 731 0469.