If you are over the age of 65 you may be 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.
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 can have an indefinite assessed income period (open-ended AIP) if you or your partner are aged 75 or over.
If you are eligible for an open-ended AIP you will 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 are eligible for an open-ended AIP include:
- income from equity release schemes
- income from annuities or private pensions
- savings or investments
Not everyone is awarded Pension Credit with an AIP, so you may need to check whether these rules apply to you. If they do not, then changes to all your income and capital must be notified in the normal way.