A new report has uncovered a widespread financial shortfall affecting millions of state pensioners across the UK, with many missing out on an average of £1,339 per year in unclaimed state support.
An Epidemic of Unclaimed Entitlements
According to research from retirement specialists Just Group, a staggering 42% of pensioner homeowners are eligible for at least one of several key government benefits. However, the study found that a massive 74% of those eligible are not claiming the money they are entitled to.
David Cooper, a director at Just Group, described the findings. "Our survey once again reveals what appears to be an epidemic of pensioner homeowners missing out on income they are entitled to claim," he stated. "Of those pensioner homeowners eligible for benefits, about three in four were failing to claim any benefit. These are low-income pensioner households likely to be struggling with the cost-of-living crisis."
Key Benefits Going Unclaimed
The financial support that is being missed includes several crucial means-tested benefits designed to assist older people on low incomes. The main benefits identified are:
- Guaranteed Pension Credit: The primary means-tested benefit for older people, which also acts as a gateway to other support like the winter fuel payment.
- Savings Pension Credit: Extra support for those who have saved some money for retirement.
- Council Tax Reduction (Council Tax Support): Help for those on low income to pay their council tax bill, available whether you own your home or rent.
- Universal Credit: Although more commonly associated with working-age people, some pensioners may still be eligible.
Mr Cooper emphasised the critical role of Pension Credit, noting, "Guaranteed pension credit is the main means-tested benefit for older people and a gateway to a range of other benefits such as winter fuel payment, but we found more than two thirds who were eligible were missing out."
A Call for Action and Awareness
The report raises serious concerns about the guidance available to people approaching and living in retirement. A fundamental issue is that these benefits are not paid automatically; individuals must proactively apply for them.
"Benefits like pension credit are not paid automatically but must be claimed, so people need the foresight to check if they are entitled to it," Cooper explained. He issued a clear call to action for cash-strapped households: "It’s important cash-strapped pensioner households do not simply assume there is no state help available - a five-minute check could unlock thousands of pounds of income each year."
The findings suggest that a lack of awareness or assumption of ineligibility is preventing vulnerable pensioners from accessing vital funds during a period of high living costs, underscoring the need for better information and support systems.
