23% of pensioners entitled to benefits leave them uncollected

Failure to claim state benefits worth hundreds of pounds a year is continuing to squeeze the income of more than half of pensioners, according to the latest figures from specialist retirement intermediary Just Retirement Solutions.

Related topics:  Retirement
Amy Loddington
21st February 2013
Retirement
Its 2012 survey of clients found that 23 per cent were failing to claim any benefit they were entitled to, losing an average of £655 income each year with the highest amount unclaimed
£3,631 a year. In addition, 33 per cent who were claiming some benefit were not receiving their full entitlement, with £213 a year on average lost and the highest amount unclaimed
£2,365 a year.

The research also shows that many of those not claiming benefits to which they are entitled were living in houses of around the average value, suggesting many of those losing out perhaps believe the fact they own property rules them out of receiving benefits. This tallies with official data that shows owner-occupiers are less likely to claim than those renting, and pensioner couples are less likely to claim than single (male or female) pensioners.

This is the third year that Just Retirement Solutions has produced its State benefits research and the numbers failing to claim continue to increase.

Stephen Lowe, Just Retirement’s group external affairs and customer insight director said:


“Many pensioners are struggling to make ends meet due to insufficient pension income and depressed savings returns.”

“At the same time they are missing out by failing to claim the benefits they should be receiving, often to the tune of hundreds of pounds each year that could make a real difference to their quality of lives.”

“Compared to 2011 and 2010, the trend is that more people are missing out each year,” said Stephen Lowe. “The only positive point is that the amounts being missed have come down, but that may reflect a less generous benefits regime.
 
“With every client our professional financial advisers first check to make sure people are getting their full entitlement. These are usually people who had long working lives, bought houses and paid their taxes. Many have never claimed benefits in their lives and really don’t know where to start without an expert to help them understand what can seem a hugely complex system.

“Part of the problem is what people perceive as the constant tinkering with the benefits rules that make it hard for people to keep up with the complexities,” said Stephen Lowe. “Already this year, plans for a new flat-rate state pension have been announced and over the next two years we are seeing the introduction of the new Universal Credit and various other changes. If you are not professionally involved it is hard to keep up.”

The most recent figures from the Department of Work and Pensions showed that around one-third (between 32-38 per cent) of those entitled to Pension Credit fail to claim, with total income lost of between £2 billion and £2.8 billion a year. Nearly four in five (78 per cent) are owner occupiers. Overall, nine in 10 pensioner couples own their own homes and two-thirds of single pensioners

Stephen Lowe said:

“Each year these figures have highlighted the same message – pensioners shouldn’t assume the financial support isn’t available, make sure you check so you know for sure. More than half of our clients did that and got a pleasant surprise.”
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