\n\t\t\t\t\tA reader is wondering whether they will need to start claiming new benefits once they hit state pension age\t\t\t\t\t <\/p>\n
In our weekly series, readers can email in with any question about retirement and pension<\/a> savings to be answered by our expert, Tom Selby, director of public policy at investment platform AJ Bell. There is nothing he does not know about pensions. If you have a question for him, email us at money@inews.co.uk.<\/a><\/p>\n Question: <\/strong>I turned 65 this year and am looking forward to collecting my state pension in 2026. I also have a fairly small defined benefit pension from earlier in my career. I am in receipt of universal credit at the moment \u2013 will I need to switch to pension credit when I hit age 66? Or will I receive it automatically?<\/p>\n Answer: <\/strong>While both have \u201ccredit\u201d in their name, universal and pension credit are separate benefit systems with different entitlements and rules.<\/p>\n Universal credit<\/a> is the main welfare benefit for people in the UK on low incomes or who are out of work. The system replaced six legacy benefits, which some readers might be more familiar with, with a single monthly payment. The benefits universal credit replaced were:<\/p>\n To qualify for universal credit in 2025, you must meet the following criteria:<\/p>\n Special provisions exist for carers, people with disabilities, and parents. Students may also qualify under certain conditions. For those who are entitled to universal credit, the monthly rates paid in 2025 are as follows:<\/p>\n These rates may be topped up depending on your circumstances.<\/p>\n So, once you reach age 66 (your state pension age), you will become entitled to the state pension<\/a> but you will no longer be able to claim universal credit. You may, however, be able to claim pension credit.<\/p>\n How pension credit works<\/p>\n As with universal credit, you will not receive pension credit<\/a> automatically \u2013 you will need to actively claim the benefit from the Department for Work and Pensions (DWP). You can start your application up to four months before you reach state pension age. Pension credit is designed to provide a top-up for the lowest-income pensioners and to qualify you will need to meet the following criteria:<\/p>\n If you\u2019re in a couple, you must apply jointly, and both incomes are assessed together. In 2025\/26, pension credit could top your weekly income up to \u00a3227.10 if you are single or \u00a3346.60 if you are in a couple if your total income is below this level.<\/p>\n When being assessed for pension credit, the DWP will consider any earned income you receive, your state pension entitlement, any private pension entitlements you have (such as your defined benefit pension) and most other benefits. <\/p>\n Any savings you have over \u00a310,000 will also be taken into account, with \u00a31 added to your income for every \u00a3500 above this level.<\/p>\n It\u2019s well worth checking if you are entitled to pension credit \u2013 the easiest way to do this is via the Government\u2019s pension credit calculator<\/a>.<\/p>\n\n
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