Assumed income from savings

Assumed Income From Savings (Tariff Income)

PLEASE NOTE THAT THE CALCULATOR USES THE GOVERNMENT'S FORMULA FOR CALCULATING INCOME FROM CAPITAL. The amount we calculate is not meant to represent the amount of income you actually receive from your capital.

If you are over Pension Credit age the government assumes you receive £1 per week for every £500 of capital you have above £10,000. Please note that retirement age for women is going up gradually from 60 to 65 so for both men and women the minimum age for this more generous treatment of capital is also increasing in stages from 60 to 65. For more information see changes to state pension age.

If you (and your partner) are under Pension Credit age and have total capital over £6,000 then the government assumes you receive £1 per week for every £250 of capital you have above £6,000. As women's retirement age increases the upper age limit for this treatment of capital will extend in stages from age 60 up to age 65.

 

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