Govt to strip mixed-age couples of Pension Credit from May 2019
10 March 2019
The Government’s decision to strip mixed-age couples of the right to claim Pension Credit will leave thousands of couples facing a hit to their retirement finances.
The change, which will come into force in May 2019, will mean both partners in a couple will have to be over state pension age to be eligible for Pension Credit.
According to the government, around 15,000 mixed-age couples will be affected by the policy change in 2019/20, with this number rising to 40,000 by 2012/22 and as many as 60,000 by 2023/24. With Pension Credit worth up to £13,273 a year versus £5,986 a year for Universal Credit, at the extreme those affected could be over £7,000 a year worse-off as a result.
Tom Selby, senior analyst, AJ Bell, said: “While policymakers can reasonably argue this change has been in the offing since the Welfare Reform Act 2012, that will be little solace to those affected who face a potentially significant retirement income shortfall.
“Anyone who thinks they might be impacted should act now to claim Pension Credit while they still can.”
Origo is to launch Unipass Letter of Authority (ULoA) at the end of November, a service aimed at simplifying...
Professional Paraplanner’s publisher, Research in Finance (RiF), is a leading research company in the financial services sector. On occasion our readers...
While the aggregated costs and legacy trail commission regime remains far from perfect, some clarity can be gleaned, says...