Martin Lewis has issued a stark warning about a benefits change which could see older couples lose a fortune.
The MoneySavingExpert.com founder says thousands of couples with age gaps stand to lose a fortune on retirement support under new Department for Work and Pensions (DWP) changes.
Under the new rules, you won't be able to claim pension-age benefits if your partner is still of working age, the Daily Mirror reports.
According to charity Age UK, those who claim financial support could lose out on up to £35,000 in the time it takes for their younger partner to reach state pension age under the new rules that will be enforced from May 15.
The rules have already come into force - but there's still time to get around it.
Martin said: “The deadline was this Wednesday 15 May, but you can still backdate a claim for three months, so in practice there’s time.
“The issue is that if you do it now you get pension credit, if you do it and don’t make the deadline you get universal credit – and in every case that pays less, in fact some may lose out on up to £7,000/year."
He added: “Pension credit is a means-tested benefit aimed at supporting retired people on low incomes and can be worth thousands of pounds a year – yet a staggering 1.3million don’t claim it.
"To qualify, you must live in England, Scotland or Wales, and have reached state pension age.”
“The quickest way to claim is to call the Pension Service on 0800 99 1234 and it will fill in the application form for you and remember you want to try to claim for pension credit under the backdating not universal credit.”
Until now, couples could claim pension credits of £255.25 per week if one of them had reached the state pension age.
One in three mixed-age couples will become ineligible for both Pension Credit and pension-age Housing Benefit – two schemes designed to support the very poorest of pensioners and help them stay above the poverty line.
Government figures suggest the average couple affected stands to lose £7,000 a year under the changes, however Age UK research shows that almost one in three couples have an age gap of five or more years, which could result on losses of up to £35,000 while waiting for the younger partner to reach the state pension age.
A DWP spokeswoman said."This change was voted on by Parliament in 2012 and means, for new claims from 15 May, only pensioners can claim Pension Credit.
"If one partner is of working age we believe it’s fair that the same incentives to work and save for retirement apply as they do for other people of the same age.
"We have updated online guidance and written to all eligible mixed age couples to make them aware of the changes, which won’t affect them unless their circumstances change.
Here's how you can get around the change
The new rules kick in this week, however there's still time for many couples who are eligible for the benefits to apply for them.
If you're a pensioner living on a low income with a partner of working age, you should check now to see if you qualify for Pension Credit and/or Housing Benefit. If you do, put in a claim before the Government changes take effect.
The good news is that couples eligible before May 15 will still be able to make a backdated claim up to August 13.
Mixed-age couples with a partner under state pension age already in receipt of pension credit or pension-age housing benefit will be unaffected while they remain entitled to either benefit, the Government has said.
Caroline Abrahams, director at Age UK, said: "It’s not at all unusual for one partner to be older than the other so lots of older couples on low incomes could be affected by this policy change without even knowing it yet.
"There is no doubt in our minds that many unsuspecting pensioners will face a heavy financial penalty for having a younger partner and this will undoubtedly affect the health and wellbeing of many of those couples.
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"Not everyone is able to carry on working until their State Pension age, not least because many of those in the most deprived areas in the UK are in ill health long before they can officially retire.
"We are deeply concerned that benefits designed to support exactly these types of people are being abolished without fully understanding the impact on older people’s lives.
"We urge the Government to look again at the implications for the poorest pensioners and reverse its decision.
"In the meantime we’re urging any pensioner who thinks there is even the slightest chance that they could be entitled to Pension Credit and/or Housing Benefit to put in a claim now – it could make a huge difference, potentially boosting their income by tens of thousands of pounds over the next few years."
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