(Excuse long post and apologies for the amounts being in pound sterling rather than dollars).
This forum's outside of the UK, so thought some might like to know or won't be au fait with our pensions, taxes, benefits for the old folk. Or perhaps you only read info from UK posters on how things roll here, even tho' some of it could be inaccurate as I've spotted recently.
It's complicated so I've just made it brief and also included links if anyone might be interested reading further info.
Taxation in the UK:
We all have an annual personal tax-free allowance of up to £12,570, which has remained this low for some time. Over that amount 20% tax is payable. This applies to pensioners too.
However, those on Pension Credit (see below) don't pay tax.
State Pension:
Since 2016, we've had a 2 tier pension system in place.
The 'OLD BASIC PENSION', and the 'NEW STATE PENSION'.
Men born on or before 6 April 1951 and
Women born on or before 6 April 1953 receive the *OLD BASIC* State Pension
Everyone born after those dates - receive the *NEW* STATE PENSION.
Currently until **April this year**:
The **OLD** basic pension - is lower @ £169.50pw - £8,814 per year
and **NEW** state pension - is higher @ £221.20pw - £11,502 per year
All pensioners used to receive a one off Winter Fuel Payment from the government of £200-300 every year and £150 Warm Home Discount to help towards paying our winter fuel bills.
We also received Cold Weather payments where we were paid if the average temperature in our area is recorded as, or forecast to be, zero degrees Celsius or below over 7 consecutive days.
That amount is £25 for each 7 day period of very cold weather between 1 November 2024 and 31 March 2025.
Late last year our new government stopped that for most pensioner - only limiting them to those who claim 'Pension Credit' (see below) or other means tested benefits.
But we do ALL receive a one off £10 Christmas bonus payment though, so all is not lost!
**In April 2025 pensions will increase by 4.1%:
The *OLD* basic pension - £176.45 a week, a rise of £363 a year
The *NEW* state pension - £230.25 a week, a rise of £472 a year
I'm on the *Old Basic State Pension* because of my age (born 1950).
Like me, many paid into a private pension scheme over the years, perhaps through their employers (in my case the NHS for about 25yrs).
Millions of pensioners now lose out on the heating payments because any small private pension takes us over the limit for Pension Credit (See below).
PENSION CREDIT:
There are 2 parts to Pension Credit:
Guarantee Credit
Savings Credit
You might get one or both parts.
When you apply for Pension Credit your income is calculated. If you have a partner, your income is calculated together.
Your weekly income to £218.15 if you’re single
Your joint weekly income to £332.95 if you have a partner
**From April 2025, pension credit will also increase by 4.1% meaning it will top up weekly income to
£227.10 if you are single - a rise of £465 a year
£346.60 if you have a partner - a rise of £710 a year
If you get Pension Credit you can also get other help, such as:
Housing Benefit if you rent the property you live in
Winter Fuel Payment
Support for Mortgage Interest if you own the property you live in
Council Tax discount
Free TV licence if you’re aged 75 or over
Help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get a
certain type of Pension Credit ie Guarantee Credit
Help with your heating costs through the Warm Home Discount Scheme
Discount on the Royal Mail redirection service if you’re moving house
You may get extra amounts if you have other responsibilities and costs.
The top up and extra amounts are known as ‘Guarantee Credit’.
You could get an extra amount to cover your housing costs, such as:
Ground rent if your property is a leasehold
Some service charges
Charges for tents and site rents
The amount you could get depends on your housing costs.
Also pensioners claiming Pension Credits can claim social tariffs for reduced broadband/mobile packages.
LINKS:
Pension credit advice | Age UK
State Pension - GOV.UK
Finally, I would like to say (politely) and without naming, that a frequent poster seems to struggle paying for services whilst admitting to receiving 'Guaranteed Pension Credit'.
This entitles her to claim free dental treatment, which she says she gets (anything from a check-up to full dentures)
She is entitled to help with glasses (voucher worth up to £215), transportation costs for hospital appointments, heating allowances and other entitlements outside of the government ones - ie social tariffs for reduced broadband/phone packages.
Not all is as it seems in their postings re the way things roll.
If she does claim Guaranteed Pension Credit, her postings online referring to her lifestyle spending habits, assets, and savings, are at odds with the eligibility criteria for Pension Credit. So perhaps she should take care of what she reveals in her postings, whether fact or fiction, because pretty soon the benefit officials could well be knocking at her door and charging her with benefit fraud.
It's almost making a mockery to those of us who genuinely struggle but fall by the wayside.
Yes, rents have sky rocketed all over. Someone wanted to stop price gouging in rents but who knows if that will ever happen. 
). 
