Pension Credit is made up of two parts: the Guarantee Credit is paid to people who are 60 or over but the Savings Credit is not paid until someone is age 65. Pension Credit is an income-based (means tested) benefit and is affected by most income that you have coming in but there is no maximum level on the amount of savings that you can have.
The Pension Credit (Guarantee Credit) is to bring pensioners up to a minimum level of income so is either in place of another benefit or it can top up the amount of that benefit (for example retirement pension). The Pension Credit Savings credit rewards people who have some savings or have extra pension even if they have too much to get the Guarantee Credit. Carers who have claimed carer’s allowance and are entitled to this benefit - even if it is not actually paid to them (for example due to the amount of their retirement pension) - get a higher rate of Pension Credit.
For most people who have stable income in retirement, Pension Credit will be paid without further claims for a five year period. When you claim Pension Credit, they can also take the details for any Housing Benefit or Council Tax Benefit claim you may be entitled to and fill in all the forms for you. You can get an estimate of your Pension Credit entitlement by using the calculator on the Pension Service website at:
www.thepensionservice.gov.uk/pensioncredit/calculator/home.asp
The Pension service - (part of the Department for Work and Pension)