If you are over the age of 65 you may have been given a Pension Credit award that lasts for 5 years or longer. This is known as the assessed income period (AIP). During this period annual adjustments will be made automatically for increases in your state and private pensions and you do not need to report most changes in income, such as increases in your savings, private pensions or income from annuities.
Since April 2016, no new Assessed Income Periods have been set meaning changes to your income and capital must be notified in the usual way.
If your Assessed Income Period is due to end before 31 March 2019 it will come to an end on the date on your award letter or sooner if you have a change of circumstance such as entering a care home. If your Assessed Income Period is due to end after 1 April 2019 it will actually end sooner, you will receive a letter giving you 6 months notice of the new end date.
It is useful to record when your assessed income period ends so that you know when award changes may take effect. The calculator’s estimate should be checked again when the assessed income period ends.
Indefinite assessed income periods
You may have a Pension Credit award with an indefinite assessed income period (open-ended AIP) if you or your partner are aged 75 or over.
This means you no longer have to report changes to most kinds of income you receive, unless the change would increase the amount of Pension Credit you receive. Changes you do not have to report if you have an open-ended AIP include:
income from equity release schemes
income from annuities or private pensions
savings or investments
If you have a open-ended AIP it will remain in place until your circumstances change.