McLean’s Financial Services

Benefits and tax allowances

When you retire you may be able to get certain benefits on top of any State Pension you’re entitled to. Some of these benefits are age-related, others depend on your income. Tax allowances are also more generous from age 65 if your income is below a certain level.

Basic State Pension
The State Pension age is currently 65 for men and 60 for women born on or before 5 April 1950 (this will increase for women born after 5 April 1950 from 60 to 65 between 2010 and 2020) and eligibility depends on your National Insurance contributions (NICs). You can choose to claim your basic State Pension as soon as you reach the qualifying age, or to delay claiming and get more later on.

Additional State Pension
The additional State Pension is also known as the State Second Pension (formerly the State Earnings-Related Pensions Scheme (SERPS) pension). Eligibility is based on a combination of your earnings from employment, and National Insurance Contributions you have made or been credited with. You may also be eligible through other factors, such as a disability or because you’ve spent time caring for someone. If you qualify, you’ll automatically get the additional State Pension when you claim your basic State Pension.

Over 80 Pension
If you’re aged 80 or over and have little or no State Pension, you may be able to claim the Over 80 Pension.

Pension Credit
If you’re aged 60 or over you can apply for Pension Credit to top up your income to a weekly minimum.

Winter Fuel Payment
You may be able to claim a payment to help with fuel bills if you’re aged 60 or over. There is also an extra £100 for eligible households that include someone aged 80 or over.

Cold Weather Payment
You may be eligible for a Cold Weather Payment to help with extra heating costs during periods of very cold weather. Payments are made automatically, you don’t need to claim.

Warm Front Grant
If you’re on a low income you may be able to claim up to £2,700 or in some cases £4,000 for heating improvements to your home.

You can get Attendance Allowance if you’re aged 65 or over and need help with personal care because of an illness or disability.

Carer’s Allowance
If you look after someone who’s severely disabled, you may be able to claim Carer’s Allowance. If you’re severely disabled, someone who looks after you may be able to claim Carer’s Allowance.

Christmas Bonus
If you get certain benefits, including a State Pension, you’ll get an extra £10 at Christmas.

Funeral Payment
A Funeral Payment can help with the cost of a simple funeral for someone close to you if you are responsible for arranging the funeral.

Community Care Grants and Budgeting Loans
Community Care Grants and Budgeting Loans can help cover the cost of one-off expenses including household items, clothing and footwear and certain travelling expenses.

Crisis Loans
Crisis Loans can be paid in an emergency or disaster to help with day to day living costs or essential items. They’re available where there’s a serious risk to you or your family and you can’t get help from elsewhere.

Housing Benefit
If you’re on a low income and paying rent, you may be able to claim Housing Benefit.

Council Tax Benefit
You may also be able to claim Council Tax Benefit if you’re on a low income.

Low cost bus passes
From age 60 you qualify for a free bus pass from your local authority.

Free eye tests, prescriptions and help with other healthcosts

If you’re aged 60 or over you may be entitled to help with various health costs, including prescriptions, eye tests and dental treatment.

TV licence reduction fee
You can receive a free television licence if you’re aged 75 or over and pay a reduced fee when renewing between age 74 and 75.

War Widow’s/Widower’s pension
You can claim a tax-free pension if your husband, wife or civil partner died because of war service or received a War Pension or related allowance.
Age-related tax allowances

Tax-free personal allowance
Everybody gets a tax-free personal allowance, an amount of income you can have before you need to pay tax. If your income is below £21,800 (2008/09) the personal allowance increases when you’re 65 and again when you’re 75.

Married couple’s allowance
If you’re married or in a civil partnership and are a taxpayer and either you or your partner was born before 6 April 1935 you can claim married couple’s allowance.

For more information or to discuss anything in this article feel free to contact Doug McLean via email or phone.