Silver Voices call for tax on state pension to be scrapped
State pension recipients can access a variety of benefits to ease financial strain. And the good news is that you may be eligible for funds worth a total of more than £8,110 that don’t require repayment.
The State Pension is not means-tested, but the amount received depends on the number of qualifying years of National Insurance Contributions or credits accumulated.
A minimum of 10 years is required to qualify for any State Pension payment, and approximately 35 years for the maximum amount – although this may be higher for those who were ‘contracted out’. Additionally, numerous other perks are available.
The current State Pension age is 66 for both men and women. Utilising the perks can help ease financial pressures and enhance quality of life without incurring additional expenses.
Here’s a guide to the freebies and discounts available to pensioners, reports Birmingham Live.
The current State Pension age is 66 for both men and women (Image: Getty)
Discounted travel – £1,084
The Senior Railcard offers a third off train fares for £30, with the average cardholder saving £96 annually. Combining this with bus travel savings yields over £1,000.
Age UK provides support through its free Advice Line, open 8am-7pm, 365 days a year. They state: “We also have specialist advisers at over 120 local Age UKs. You can contact on 0800 768 1602.”
Free passport – £94.50
British nationals born on or before 2 September 1929 are eligible for a free British passport, whether it’s a new application or a renewal. The Post Office Check and Send service is also available at no cost, along with free secure delivery.
In 2004, a scheme was launched to offer free passports to British citizens aged 75 or over as a token of gratitude for their contributions during the war. The initiative targets those who were 16 or older at the end of the conflict.
Occasionally, there are calls to expand the scheme to include all individuals above a certain age. However, successive governments have dismissed this proposal, arguing that an ongoing age-related concession for free passports would be significantly more costly than the current scheme and could necessitate a hike in the passport fee for other applicants.
Free prescriptions – worth £114.50 annually
All individuals aged 60 and over are entitled to free prescriptions. Those under 60 can save on prescriptions by purchasing prescription prepayment certificates from the NHS for 3 or 12 months, covering all prescriptions needed during that period.
Those aged 60 or over are also eligible for a free NHS sight test, so inform your optician when you turn 60.
If you require regular prescriptions and purchase an annual prepayment certificate, you could save up to £114.50 per year.
State pension recipients can access a variety of complimentary benefits to alleviate financial strain (Image: Halfpoint Images via Getty Images)
Free eye tests – £25
All individuals aged 60 and above are entitled to free NHS eye tests, which usually range from £20 to £25 in cost. To get free prescriptions, those who are 60 or over may need to provide proof of age to the pharmacist.
If you’re a recipient of any of the aforementioned benefits, simply present your benefit award letter to healthcare professionals when booking or attending an appointment.
Those eligible under the NHS Low Income Scheme will receive either a HC2 certificate for full assistance or a HC3 certificate for partial aid with health expenses. Inform staff about your certificate when scheduling an appointment and ensure to bring it along to your appointment.
National Insurance exemptions – worth £1,851.20
National Insurance exemption amounts to £1,851.20. An individual earning £20,000 annually currently contributes £594 towards primary Class 1 NICs, while an employee with a yearly income of £40,000 will pay £2,194 this year, as per data from Tax.org.uk..
The average weekly wage in the UK, according to ONS figures, is £687 for total earnings. This translates to a typical National Insurance contribution of £1,851.20, which is saved post State Pension Age.
Pension Credit – £4,300 a year
Pension Credit sums up to £4,300. It’s a means-tested benefit designed for people over State Pension age with low income.
It consists of two components: Guarantee Credit and Savings Credit, and is separate from your State Pension.
Claiming Pension Credit could potentially make you eligible for additional benefits such as assistance with health and housing costs. You’ll also qualify for the Winter Fuel Payment, valued at £300.
Applying for benefits can be a win-win situation – even if you’ve been rejected before, you can still submit a new claim each year.
Free TV licence – £174.50 a year
One such benefit is the free TV licence worth £174.50 annually. If you’re 75 or older and receive Pension Credit, you’re eligible to claim this.
NHS dental treatment – £26.80
Another perk is free NHS dental treatment, which could save you £26.80. You or your partner will qualify for this if you receive any of the listed benefits.
Even if you don’t receive these benefits but have a low income, you might still be eligible for some assistance with health costs through the NHS Low Income Scheme. Applications for this scheme can be made online or by post.
Broadband support – £142.92
Broadband discounts can also lead to significant savings of up to £142.92 annually. Many broadband providers offer reduced social tariffs for low-income individuals.
These plans can cost as little as £14.99 per month, compared to the average broadband cost of £26.90 per month, and typically include line rental as well. Over a year, this could result in substantial savings.
