What benefits might I be able to claim when I retire?

Your pension may not be the only income you have to live on when you start getting your State Pension. You may be entitled to other benefits and payments once you leave work and this can include help with heating costs, medication, or even housing. These benefits often go unclaimed, so it’s a good idea to see how they work and whether you are entitled to any. Please note that UK Government benefits are subject to change as are your own personal circumstances.

The State Pension

In the UK men and women can start claiming their state pension from the age of 66. The state pension is a regular payment from the government most people can claim when they reach State Pension age. The amount of State Pension you will get depends on how many “qualifying” years of National Insurance payments you have made or credited with when you start claiming..

As of April 2024, the new state pension pays out £221.20 a week and you’ll need to have 35 qualifying years of National Insurance contributions to get the full amount There is also a minimum of 10 years to get any amount.

In the autumn budget the chancellor has confirmed that the state pension will rise by 4.1 per cent in April 2025.
The full new state pension will increase to £230.30 a week (£11,975 a year) and the full, old basic state pension will go up to £176.45 a week (£9,175 a year).

Up until 5^th April 2025, those reaching state pension age after 5^th April 2016, you can plug missing contributions from the years 2006 through to 2016 by buying these back, so check your national insurance record on the DWP website to see if you need to top up.

Topping up can cost up to £907.40 per year and will add around £328.64 a year to your pension (based on the 2024/25 State Pension)

You can top up your NI using the voluntary Class 2 National Insurance page link or the voluntary Class 3 National Insurance page.

You may not have been able to pay National Insurance, for example if you are ill or caring for someone. The government may give you credits so that you can continue building up your State Pension entitlement. 

What is the additional state pension? 

Additional state pension is a form of State Pension only available to men born before 6 April 1951, or women born before 6 April 1953. It is not fixed and is determined by the number of qualifying years you have, it is paid on top of the State Pension.

What is Pension Credit?

If you are claiming a state pension but are on a low income, live in the UK, you may also be able to claim Pension Credit to help with your living costs. Pension credit is separate from your state pension.

Pension Credit comes in two parts, benefit guarantee credit and savings credit; only people who reached pension age before 6 April 2016 can claim the savings credit part.

Claiming it, even if you are only entitled to a small amount, means you may be entitled to other benefits such as Housing Benefit or Cost of Living Payments. If you are disabled and or a carer you may get extra Pension Credit. 

How much is the Pension Credit?

The guarantee credit part of Pension Credits tops up your pension income to a guaranteed level of £218.15- if you’re single - or £332.95 if you’re a couple.

How much is the pension credit savings credit

Savings credit is paid if you have other savings - aside from the basic State Pension - and it pays extra income up to a maximum of £17.01 a week if you are single or £19.04 if you have a partner.

The savings credit is only available to those who reached retirement age before 6 April 2016.

In the autumn budget the chancellor has confirmed that the Pension Credit standard minimum guarantee will increase by 4.1% from April 2025. 

The Treasury also announced that the administration of Pension Credit and Housing Benefit will be brought together for new claimants from 2026. “This is two years earlier than previously planned, and will support more people to receive the benefits that they are entitled to,” it said.

Can I get other help with the cost of living when I retire?

• There are lots of other benefits you may be able to qualify for if you get Pension Credit or other means-tested benefits. These may include: 
• Free TV licence for over 75s
• Council Tax reduction
• Warm Home discount
• Housing benefits
• Cold weather Payments
• Winter Fuel Payments
• Free home insulation and boiler grants
• Hospital and travel expenses
• Free dental treatment
• Vouchers for glasses/contact lenses

To find out if you are eligible for Pension Credit, click here.

You can find additional information and if you are eligible, as well as a link to apply for Pension Credit, by visiting https://www.gov.uk/cost-of-living/60-or-over

What if I do not qualify for Pension Credit?

You may be eligible for Universal Credit if you are on low income or need help with your living costs however to qualify you could be:

• Out of work
• Working (including self-employed or part time)
• Unable to work due to a health condition
  To claim you must:
• Live in the UK
• Be aged over 18 (however there are exceptions)
• Be under State Pension age
• Have £16,000 or less in money, savings and investments

Examples of the benefits you may be entitled to:

Council Tax benefits

You can claim help with paying your council tax, also known as council tax reduction, whether you own your home or whether you are renting it. You’ll need to contact your local council as different councils operate different discount schemes.

Cheaper broadband and phone packages

Social tariffs are cheaper broadband and phone packages for people claiming Universal Credit, Pension Credit and some other benefits. Some providers call then “essential” or “basic” broadband.

You may also be entitled to help with your heating costs and paying your water bill.

Help with the cost of living when you retire

In England, everyone aged over 60 gets free prescriptions and eye tests, and there is help available towards dental treatment, travel costs if you need to visit hospital for appointments, and help covering the cost of glasses or contact lenses. In Scotland, Wales and Northern Ireland, everyone is entitled to free prescriptions. People who have severe disabilities, and/or care needs and are on the State Pension can also receive Attendance Allowance.

Help with travel

• Free bus travel is available to over 60s in Scotland, Wales or Northern Ireland and when you reach State Pension Age in England.
• If you live in London and are over 60, you get a free travel Oyster photocard which allows you to travel within the capital for free.
• Age 60 or over? You can save 1/3 on most rail fares throughout Great Britain with a Senior Railcard.

Help for widow and widowers

If your spouse or civil partner was in the armed forces, or during a time of war before 6 April 2005, then you may be able to claim either War Widow’s or Widower’s Pension.

If they died or sustained an injury or illness due to serving in a conflict on or after 6 April 2005, you might be entitled to compensation through the Armed Forces Compensation Scheme.

War Disablement Pension

If you were injured or disabled while serving in the Armed Forces before 6 April 2005, you can get extra help towards your pension.

How can I find out if I’m entitled to benefits?

The free MoneyHelper website has a benefits calculator which can help you work out which benefits you may be eligible for. The Gov.UK website also has a benefits checklist.

Age UK website provides information on Benefits and Entitlements. You can access their website, age UK here or visit the government's cost of living support page.