![\"British](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/03\/6788553.jpg\" "\\"British")
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State pensioners will start to lose a key benefit at \u00a310,000 savings (Image: Getty)<\/p>\n
State pensioners are being warned about a \u00a310,000 savings limit set in place by the DWP, which could impact their eligibility for a hugely beneficial income-boosting benefit. Pension Credit <\/a>will currently give state pensioners up to \u00a3227.10 per week, which is just a few pounds off the full \u00a3230.25 per week in pension payments for new state pensioners with a full National Insurance record, and both of these figures will increase in April thanks to the Triple Lock.<\/p>\n But the pensions system is complex, and many factors affect the amount you’ll actually be paid each week. For those on the old basic state pension<\/a>, especially if they don’t have a full National Insurance record, the amount will be much lower than that, maxing out at \u00a3176.45 per week in the best-case scenario, rising by another 4.8% in April 2026 to about \u00a3184. That’s why many state pensioners,<\/a> especially older pensioners, need an income top-up from the DWP<\/a> via the Pension Credit benefit in order to have enough money to live on in their old age. But there is a little-known restriction in place – the \u00a310,000 savings rule for Pension Credit.<\/a><\/p>\n READ MORE: HMRC tax-free Personal Allowance raised to \u00a313,830 with \u2018backdate\u2019 rules <\/a><\/p>\n READ MORE: State pensioners can save \u00a360,000 in Cash ISA in 366 days <\/a><\/p>\n State pensioners can claim Pension Credit<\/a> if they earn less than about \u00a3227.10 per week (set to rise to \u00a3238 in April), either via state pension<\/a> payments or other income sources. For those on the old basic state pension \u2013 which at its basic rate pays a maximum of \u00a3176.45 per week right now, even with a full National Insurance record \u2013 it could top up your weekly income to almost the same level as a state pensioner on the new post-2016 state pension.<\/p>\n But there is another eligibility criterion, aside from weekly income: savings. If you have savings in savings accounts totalling \u00a310,000 or more, your Pension Credit eligibility will be reduced by \u00a31 for every \u00a3500 of savings you have above the \u00a310,000 threshold.<\/p>\n Stephen Lowe, director at retirement experts Just Group, has warned that the \u00a310,000 threshold could cause some pensioners to lose money and have their benefits reduced.<\/p>\n He told ThisIsMoney: “The \u00a310,000 lower capital limit means that every \u00a3500 of savings \u2013 not including the main residential property \u2013 held by people who qualify for pension credit counts as \u00a31 income a week, which can erode the income received from the benefit.<\/p>\n \u201cThis feels unfair on two fronts given many pensioners will aim to keep a rainy-day fund in the event of emergency repairs or a large, unexpected cost.<\/p>\n \u201cIt is the equivalent of a 10.4% interest rate<\/a>. Secondly, the limit has not moved since 2009 and it is likely therefore that more and more people are seeing their benefit income reduced as they fall into this bracket.\u201d<\/p>\n The Government\u2019s gov.uk<\/a> site explains: \u201cIf you have \u00a310,000 or less in savings and investments, this will not affect your Pension Credit. If you have more than \u00a310,000, every \u00a3500 over \u00a310,000 counts as \u00a31 income a week. For example, if you have \u00a311,000 in savings, this counts as \u00a32 income a week.\u201d<\/p>\n It means that if you have too much money in savings, you could be ineligible for Pension Credit and therefore be unable to top up your weekly income from the state in retirement.<\/p>\n While there isn\u2019t a fixed limit on savings, if you had, for example, \u00a3110,000 in savings, then \u00a3100,000 of your savings would be above the \u00a310,000 threshold. \u00a3100,000 is 200 increments of \u00a3500, which means the eligibility calculation would be \u00a3200 per week.<\/p>\n If you also had a state pension payment of \u00a3184 per week, that would be \u00a3384, and you wouldn\u2019t be eligible for Pension Credit. Of course, your specific circumstances may be different; how much income you have from your state pension calculation (based on your NI record), your savings, and other income are all factored in to your personal eligibility.<\/p>\n Some types of income are disregarded in calculations, for example, Attendance Allowance<\/a>, PIP, Disability Living Allowance and some other DWP benefits do not count, as well as any adoption or fostering allowances, a dependant child\u2019s income or Scottish Carers Allowance Supplement payments.<\/p>\n