How Much Money Can You Have in the Bank on Pension Credit?

If you’re approaching retirement or already of pension age, you’re probably wondering: how much money can you have in the bank on Pension Credit?

It’s a common concern, especially when trying to balance savings and benefit eligibility. In the UK, Pension Credit is a key means-tested benefit that can boost your income — but your savings can affect how much you receive.

In this blog, you’ll learn how your savings impact Pension Credit, the current thresholds, and how to maximise your chances of qualifying — even if you have money tucked away.

What Is Pension Credit and Why Does It Matter?

Pension Credit is provided by the Department for Work and Pensions (DWP) to support people over State Pension age with low income. It comes in two parts:

What are the two parts of Pension Credit?

• Guarantee Credit – tops up your weekly income if it’s below £218.15 (single) or £332.95 (couple) as of April 2025.
  
• Savings Credit – a reward for those who saved modestly for retirement, available only if you reached State Pension age before 6 April 2016.
  

How is Pension Credit calculated?

Pension Credit is means-tested. That means your income and savings are assessed to determine how much you’re entitled to. This includes:

• State Pension
  
• Private or workplace pensions
  
• Earnings
  
• Savings and investments
  

How Much Money Can You Have in the Bank on Pension Credit?

What is the Pension Credit savings limit in 2025?

You might be surprised to hear that there’s no official maximum amount you can have in the bank to qualify for Pension Credit.

However, the first £10,000 of your savings are disregarded when calculating your entitlement.

Any amount over £10,000 is treated as providing a notional income — even if you’re not actually earning interest.

What happens if you have more than £10,000 in savings?

For every £500 over the £10,000 threshold, the DWP assumes you have £1 a week in extra income. This can reduce your Pension Credit payments.

So if you had £12,000 saved, that’s £2,000 over the threshold:

• £2,000 ÷ £500 = 4
  
• That’s £4 a week counted as income — potentially reducing your benefit by £4 per week.
  

How Are Savings Counted for Pension Credit?

What types of savings are included?

The DWP includes most kinds of accessible savings when assessing your claim:

• Bank and building society accounts
  
• Savings in ISAs (both cash and stocks & shares)
  
• National Savings accounts and Premium Bonds
  
• Investments and shares
  
• Property (other than your main home)
  

What savings are disregarded or excluded?

Some types of capital may be disregarded, including:

• Compensation payments held in trust
  
• Lump-sum payments for social security arrears
  
• Money saved for funeral expenses (within limits)
  
• Certain types of life insurance policies
  

Can You Still Get Pension Credit If You Have a Lot Saved?

Absolutely — as long as your income (including notional income from savings) is below the threshold, you can still qualify.

Here’s a table to show how savings levels affect assumed income and potential reduction in benefit:

Savings vs. Assumed Income vs. Impact on Pension Credit

Your Savings	Assumed Weekly Income	Likely Impact on Pension Credit
£9,500	£0	Full eligibility
£12,000	£4	Small reduction
£20,000	£20	Moderate reduction
£30,000	£40	Substantial deduction

Are there exceptions or special cases?

Yes — if you’re receiving other benefits (like Attendance Allowance or Carer’s Allowance), you might still qualify for a higher Pension Credit amount, even with more savings.

How Can You Check If You’re Eligible?

What tools can help you calculate Pension Credit?

You can use the Pension Credit calculator on the GOV.UK website to get an estimate. Other useful resources include:

• Citizens Advice
• Age UK
• MoneyHelper
  

What documents and information will you need?

Be ready to provide:

• Your bank statements
• Details of any pensions or earnings
• Proof of ID and residency status
• Your partner’s financial information (if applicable)
  

Tips to Maximise Your Pension Credit Eligibility

• Try to keep savings just under £10,000 where possible
• Apply even if unsure — thousands miss out every year
• Use budgeting tools to plan your finances
  

Conclusion

To recap, if you’re asking “how much money can you have in the bank on Pension Credit?”, the answer is: as much as you like — but only the first £10,000 is ignored when calculating your benefit.

Savings above that will reduce your entitlement gradually. Even if you have significant savings, it’s always worth checking — you might still qualify, especially if you have other eligible circumstances.

Take action today: check your eligibility, use a calculator, or contact an advisor — and don’t miss out on money that could help in retirement.

Common Questions About Pension Credit and Savings

1. Is there a penalty for having too much money in the bank?

There’s no penalty, but your benefit amount is reduced based on assumed income from your savings.

2. Can you gift money away to qualify?

Be careful. The DWP may apply deprivation of capital rules if you give away savings to increase your eligibility.

3. What if your savings go up or down over time?

You should report any significant changes in your capital. The DWP has the access to reassess your claim and change your payments.

4. Do ISAs and Premium Bonds count?

Yes, these are included in your total savings when your Pension Credit is assessed.