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Hannah is a qualified mortgage and financial advisor with over 10 years experience. She helps with pension, investment, insurance, savings, banking and mortgage queries.
I am thinking about releasing equity from my home, but could this affect my eligibility for pension credit?
A Which? Money member
Hannah Heath, Which? money expert, says…
Equity release could affect your eligibility for pension credit, depending on how much you have saved and how much you receive from releasing equity.
Pension credit tops up your weekly income to £227.10 if you’re single or your joint weekly income to £346.60 if you have a partner (these rates are for the 2025-26 tax year). If you earn more than this, you likely won’t be eligible, unless you have a disability or are a carer.
However, it’s not just income (such as pensions) which can stop you getting pension credit.
Every £500 over £10,000 in savings counts as £1 income a week
If you have £10,000 or less in savings and investments this will not affect your pension credit but if you have more than this, every £500 over £10,000 counts as £1 income a week. For example, if you have £20,000 in savings, this counts as £20 a week.
While the proceeds from equity release are in your account, they could therefore reduce your eligibility for getting pension credit.
You’re required to take financial advice before using equity release, so the adviser should discuss its impact on benefits as part of this process.
Speak to the experts at HUB Financial Solutions, they'll be able to help
Go to HUB Financial SolutionsIf you take out an equity release product recommended by HUB Financial Solutions, Which? will earn a commission to help fund our not-for-profit mission
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