Two Thirds of Pensioners Missing out on Over £1,000 a Year in Benefits
- Home owning pensioners are missing out on their full benefits
- 1 in 5 aren’t receiving their full entitlement
- Average household missing out on £1,013 of income each year
- Pensions group blame complicated benefits system
Research has revealed that pensioners are missing out on hundreds, and in some cases thousands, of yearly income by not claiming their full State Benefits.
Retirement financial service, Just Group, found that 42% of pensioners who own homes are failing to benefits for this, and a further 19% are claiming but receiving too little.
The average value of these unclaimed benefits is £1,013, but some are missing out on far more.
One man from Norfolk was losing out on £7,142 a year.
The research also found that half of those eligible for benefits are missing out on at least one benefit, and 10% are missing out on two benefits.
Stephen Lowe, Group Communications Director at Just Group, said, “The figures make clear that in a complex system, people are struggling to get to grips with what State Benefits they are entitled to.
“It strengthens the case for making free guidance a default option for all those heading into retirement, and that guidance should include information about entitlements to State help.”
Earlier in the week, it was revealed that over 90% of part-time carers are missing out on National Insurance credits.
What Benefits are People Missing Out on?
Just Group found that the benefit people miss out on the most is the Guarantee Pension Credit.
Lowe said, “The Guarantee Pension Credit has the biggest unclaimed sums, perhaps because it can be worth such a significant sum- up to £8,286 a year for a single person, and £12,352 for a couple.”
One in three who are entitled to this benefit are not claiming it, and even those who do are not always receiving enough.
Savings Pension Credit is the least likely benefit to be claimed, with the average person missing out on £275 a year for not claiming this.
Council Tax Reduction is another benefit that large amounts of pensioners are not claiming.
Fewer than half of pensioners who are eligible for this benefit are claiming it, and it would save an average of £491 a year.
How to Check What You’re Owed
There are places that you can go to get free advice on what benefits you’re owed, how much you’re due, and how to go about claiming these.
Charity Turn2Us also has an online benefits calculator, where you put in your details and it will tell you what you’re owed and how much.