Pensions - Articles - Pensioner couples to miss out because of toy boy tax


From 15 May, the rules for couples claiming pension credit is changing. The Department for Work and Pensions has announced that from mid-May, couples will only be able to claim pension credit when both are over the State Pension age.

 Previously, a mixed-age couple could claim the benefits when the oldest of the pair reached State Pension age, which is currently 65 for both men and women.

 Those currently in receipt of the credits will not be affected, but new claimants after this date could lose out on up to £7,000 a year in benefits.

 Partner and Actuary at Quantum Advisory, Stuart Price, says: “The whole purpose of pension credits is to give a little extra to the poorest pensioners. To put it into context, a couple currently receiving Universal Credit will be earning £5,986.68 a year. Under existing rules, when the older partner reaches State Pension age, they will typically receive pension credit of £13,273 a year. From 15 May, the couple will only be able to claim the higher income when both are of retirement age.

 “While I understand the government not wanting to discourage people who are of working age from seeking employment, I do think this new rule has been ‘swept under the rug’ and may come as a shock to some following the 15 May change-over date.

 “Age UK is among those campaigning against the change suggesting elderly people on lower incomes will be more vulnerable, so we will watch to see what happens.”

  

 
  

Back to Index


Similar News to this Story

Sackers launch guide for trustees on pension transcations
Sackers have published its latest guide for trustees on buy-ins, buy-outs and longevity transactions. This guide is focused on supporting pension sche
Pensions Minister echoes climate warnings in Westminster
MPs from across the House of Commons have debated climate change and pensions. Pensions Minister Guy Opperman responded. Earlier he spoke of ‘kickstar
New tools allow pension schemes to deliver greater value
New tools helping pension schemes deliver greater value for money for millions of savers have been launched today (21 May) by the Cost Transparency In

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.