Widower, 84, asks: ‘Will the £8,000 I hold for funeral costs count against Pension Credit claim?’

Jasmine replies: This is a good question as Pension Credit can be affected by the amount of savings you have.

It’s a ‘means-tested benefit’, which means they take your income and savings into account when they work out how much Pension Credit you could get.

I’m sorry that your life insurance has run out as that would have been a handy way to pay for funeral costs.

However, I have asked Jon Greer, head of retirement policy at Quilter, for his views on this and this is what he said: “Pension Credit comes in two parts. You may be eligible for one or both parts.

“The first part is known as Guarantee Credit which tops up your weekly income to £218.15 if your income is lower than this amount.

"Savings and investments can be ‘treated’ as income for this purpose but only if you have £10,000 or more. If you have savings or investments over £10,000, the amount over £10,000 is considered as income.

"Specifically, for every £500 over £10,000, £1 is added to your weekly income calculation.

“The second part of Pension Credit is called the Savings Credit.

"As you reached the state pension age before April 6, 2016, you may be eligible for Savings Credit.

"You could get up to £17.01 extra a week but the amount you receive depends on how much you have in savings. The easiest way to work out how much you will receive is by using the Pension Credit Calculator on the government website or calling the Pension Credit claim line on 0800 991234 (Mon to Fri 8am to 6pm).

“It's really important you check your eligibility as the UK government has introduced changes that limit Winter Fuel Payments, which used to be available to all pensioners, to only those who are eligible for Pension Credit and other means-tested benefits.

"This change is significant because it drastically reduces the number of pensioners who will receive the Winter Fuel Payment.

“However, you may still be able to be eligible for the Winter Fuel Payment if you are eligible for other benefits such Attendance Allowance.

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"It is therefore worth researching what if any benefits you might be eligible for and if they enable you to get the Winter Fuel Payment. The deadline for making a backdated claim that includes Winter Fuel Payments is December 21.”

It’s worth taking a look at the Government’s website at Gov.uk and looking up ‘Pension Credit Eligibility’. You can also get help and advice from Age UK, or Citizens Advice.

If your circumstances change then contact the Pension Service helpline about it here.

Jasmine Birtles is a personal finance expert, TV and radio presenter and author of 38 books.

Her website, MoneyMagpie.com, covers all aspects of personal finance from money-saving and money-making ideas to investment and pensions information. She is a keynote speaker at conferences around the world.