"The 15% of pensioners who are eligible for Guaranteed Pension Credit but failing to claim are missing out on almost £1,700 a year per household on average"
This is the third annual decline in the number of claimants and marks a drop from almost 2 million since 2016. It also shows that women have a higher take-up rate than men, comprising nearly two-thirds (64%) of claimants.
Recent research from Just Group found that 46% of eligible pensioner homeowners are failing to claim any State benefits and a further 18% are claiming but receiving less than they are entitled to.
The data shows that those failing to claim anything are each missing out on an average of £1,423 a year per household, while those receiving too little are underclaiming by £2,102 a year.
Savings Pension Credit has the lowest take-up rate of just 21%, followed by Council Tax Reduction, which is claimed by 42% of those entitled. Guarantee Pension Credit has the highest take-up rate of the three key benefits at 85%, but those failing to claim are missing out on an average £1,690 a year and those who are not receiving all they are entitled to should receive £2,281 a year more.
Additionally, during a recent series of Financial Reporter Roadshows, 54% of advisers surveyed said they had worked with consumers who were not claiming all of their benefit entitlements.
69% of advisers surveyed at the Roadshows said they routinely discuss benefit entitlement with your clients who are at or approaching retirement age and 19% said they 'sometimes' do. Just 12% of advisers are failing to regularly discuss benefit entitlements with their older clients.
When asked why some consumers are failing to claim the benefits they are entitled to, 79% said there is a lack of information about what's available at 41% believe the application process is too complicated.
29% said there is an assumption that being a homeowner means you are not entitled to any benefits and 21% believe there is still a stigma surrounding benefits claimants.
Stephen Lowe, group communications director at Just Group, commented: “We like to think that State Benefits reach those who need them most, but this is clearly not the case with Pension Credit. The 15% of pensioners who are eligible for Guaranteed Pension Credit but failing to claim are missing out on almost £1,700 a year per household on average, while those 79% failing to claim Savings Pension Credit are losing £453.
"With many pensioners struggling to make ends meet, this should be a wake-up call for everybody to check their own eligibility. In the world of often-complex decisions about finances in retirement, this is one simple thing which could hugely benefit retirees.
“This reiterates the need for Pension Wise to include guidance on State Benefits in the information they offer.”
