Pensioners still fail to claim millions in benefits

Unclaimed state benefits has been an issue for many years but with average retirement income falling dramatically and pensioners feeling more and more squeezed, it's never been more important to claim everything you're entitled to.

New research from Just Retirement Solutions shows the scale of the problem, with more than half of the people contacting them for information on equity release failing to claim any or all of the benefits they are entitled to.

Just Retirement's survey found that 20% were failing to claim any benefit at all, up from 18% in 2010. This group was losing out on average by £872 of unclaimed benefits per year but the biggest loss in one case was £8,766.

Another 34% were receiving some, but not all their benefits, up from 26% two years ago. This group was losing out on average by £676 per year, with the biggest loss in one case of £1,408.

"The figures provide more compelling evidence of a 'squeezed middle' who are finding it hard to make ends meet," said Stephen Lowe of Just Retirement.

"They tally with official figures showing it is mainly home owners on low incomes who are missing out."

Just Retirement said the figures showed that more and more pensioners were looking to supplement their income by turning to new sources like equity release, but it warned their first step should be to check if they are claiming the benefits they are entitled to.

Teresa Fritz, consumer finance expert at MoneyVista, said: "Sadly, this isn't new information. For many years pensioners have failed to claim benefits they are entitled to, and indeed have already paid for, as taxpayers. This is a sad indictment of our benefits system, which often makes it so difficult to claim, many people are too daunted to even try.

"However before looking to boost your income with products like equity release, it's vital people take advice and look at all the other less drastic options."

£3 billion in unclaimed Pension Credit

Earlier this year, the Department of Work and Pensions released figures showing that 32% to 38% of those entitled to Pension Credits fail to claim. The total amount of income lost across the UK is between £2.0 billion and £2.8 billion a year.

The DWP report showed that of those who fail to claim, nearly four in five (78%) are owner occupiers.

Fritz continued: "The clear message to pensioners is that you should check you are getting your full entitlement. There are many organisations that can help you such as Citizens Advice, Turn2Us and Age UK."
MoneyVista lets you take control of your money now and into the future.

Whatever your plans for retirement, building a MoneyVista plan answers your big, financial questions.

Questions like: How much income will you need in retirement and how much more do you need to save to get the retirement income you want?

You can explore your options for improving your income in retirement and see what happens if you retire earlier or later than planned.

You can even see the effect of releasing value from your property to help boost income in retirement.

REDNEOL wrote:Unclaimed state benefits has been an issue for many years but with average retirement income falling dramatically and pensioners feeling more and more squeezed, it's never been more important to claim everything you're entitled to.

New research from Just Retirement Solutions shows the scale of the problem, with more than half of the people contacting them for information on equity release failing to claim any or all of the benefits they are entitled to.

Just Retirement's survey found that 20% were failing to claim any benefit at all, up from 18% in 2010. This group was losing out on average by £872 of unclaimed benefits per year but the biggest loss in one case was £8,766.

Another 34% were receiving some, but not all their benefits, up from 26% two years ago. This group was losing out on average by £676 per year, with the biggest loss in one case of £1,408.

"The figures provide more compelling evidence of a 'squeezed middle' who are finding it hard to make ends meet," said Stephen Lowe of Just Retirement.

"They tally with official figures showing it is mainly home owners on low incomes who are missing out."

Just Retirement said the figures showed that more and more pensioners were looking to supplement their income by turning to new sources like equity release, but it warned their first step should be to check if they are claiming the benefits they are entitled to.

Teresa Fritz, consumer finance expert at MoneyVista, said: "Sadly, this isn't new information. For many years pensioners have failed to claim benefits they are entitled to, and indeed have already paid for, as taxpayers. This is a sad indictment of our benefits system, which often makes it so difficult to claim, many people are too daunted to even try.

"However before looking to boost your income with products like equity release, it's vital people take advice and look at all the other less drastic options."

£3 billion in unclaimed Pension Credit

Earlier this year, the Department of Work and Pensions released figures showing that 32% to 38% of those entitled to Pension Credits fail to claim. The total amount of income lost across the UK is between £2.0 billion and £2.8 billion a year.

The DWP report showed that of those who fail to claim, nearly four in five (78%) are owner occupiers.

Fritz continued: "The clear message to pensioners is that you should check you are getting your full entitlement. There are many organisations that can help you such as Citizens Advice, Turn2Us and Age UK."
MoneyVista lets you take control of your money now and into the future.

Whatever your plans for retirement, building a MoneyVista plan answers your big, financial questions.

Questions like: How much income will you need in retirement and how much more do you need to save to get the retirement income you want?

You can explore your options for improving your income in retirement and see what happens if you retire earlier or later than planned.

You can even see the effect of releasing value from your property to help boost income in retirement.

REDNEOL, Yet on the continent, State pensions are considerably higher for everybody and based on the last few years of an individuals contributions which vary in the different EU country's. I believe those years are between 7 and 10 years. There is no means testing for State handouts.

Over here in Britain, our elderly people have paid in for 20 30 and 40 years, yet their State pension is a disgrace.

I have never believed in means testing pensioners for State handouts, and the unclaimed amount of £2.8 billion proves that pensioners dont like it either.

When a person has worked hard all their life, and paid their taxes and NI contributions, they dont expect to be given a meagre State pension on their retirement and then be told if you cant live on it, you can be means tested for State handouts.

This is a national disgrace, which I totally appose.