Recent findings indicate that a significant number of pensioners in the UK are unaware of financial assistance available to them. Approximately 75% of eligible pensioners are not claiming an average payment of £1,339 annually, as reported by retirement specialists Just Group.
Pensioners and Government Payouts
Over 40% of homeowners aged 65 and older qualify for at least one government benefit. However, nearly three-quarters of these individuals are not utilizing this financial support. David Cooper, director at Just Group, remarked on this alarming trend, noting the lack of awareness among low-income pensioners.
- 42% of pensioner homeowners are eligible for government payouts.
- 74% of these eligible pensioners are not claiming their benefits.
- Average missed payments amount to £1,339 annually.
Importance of Financial Awareness
The report highlights several types of benefits that pensioners may be missing out on, including:
- Guaranteed pension credit
- Savings pension credit
- Council tax reductions
- Universal credit
Despite being eligible, only 24% of those entitled to council tax reductions are making claims. This lack of action could have serious implications for their financial stability, especially during the ongoing cost-of-living crisis.
Claims and Eligibility
Cooper pointed out that guaranteed pension credit serves as a crucial means-tested benefit for seniors. Yet, over two-thirds of eligible pensioners fail to claim it. This situation raises concerns about the support available to individuals transitioning into retirement.
Claiming benefits is not automatic; pensioners need to actively seek information. A brief evaluation of their entitlements can potentially reveal thousands of pounds in additional income each year.
- 62% of pensioners eligible for benefits are not claiming any.
- 12% are missing out on two types of benefits.
- 5% are failing to claim three or more benefits.
Among those who are claiming, around 14% receive insufficient amounts, averaging a shortfall of £1,162 annually. One case highlighted included a pensioner missing out on £113.03 per week, totaling £5,877 per year.
Encouraging Pensioners to Check Eligibility
It is essential for eligible pensioners to investigate their qualifications for various benefits. Simply assuming there isn’t any available support can lead to significant unnecessary financial hardship.
Checking eligibility takes minimal time yet can secure substantial financial assistance, ultimately improving the quality of life for pensioners in need.
