You should enter the amount of Pension Credit that the client currently receives.

Clients may receive another benefit from the Department for Work and Pensions - please make sure that you only enter the amount of Pension Credit received. To find the correct amount look on a recent benefit statement or an award letter from the Pension Service.

The amount that the client currently receives in Pension Credit may differ from the amount worked out by this calculator. In particular, the calculator does not take into account assessed income periods for clients who are already claiming benefits.

The calculator’s estimate should be checked again when the assessed income period ends.

Assessed income periods

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 but you do not need to report changes such as increases in your savings or other income.

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 now have an indefinite assessed income period (open-ended AIP) if:

• you are on pension credit and you have a standard assessed income period (AIP) in place which is due to end on or after 6 April 2009 and you are 80 or over by the end of the existing AIP,
• you are on Pension Credit and would have been given a new standard AIP (5 years) following a review at the end of your existing AIP and you are 75 or over on the start date of the new AIP,
• you claim Pension Credit on or after 6 April 2009 and would have been eligible for a standard AIP (5 years) and are aged 75 or over on the AIP start date.

If you are eligible for an open-ended AIP you will no longer have to report changes to your retirement income, 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 pensions
• savings or investments