What is pension credit?


Quick Answer

Pension credit is a feature of the retirement system in the United Kingdom that provides supplemental income to retirees with low income, according to the U.K. National Health Service. It consists of two parts, the guarantee credit and the savings credit.

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Full Answer

The basic pension provides a regular monthly income to retirees who have contributed to the National Insurance program, according to Gov.uk. Those with very low overall income may qualify for the guarantee credit, which boosts the pension to a specified level. The savings credit provides an increase for low-income pensioners who saved for retirement, but is being phased out for people who reach pension age on or after April 6, 2016.

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