Pensioners on the lowest incomes are missing out on thousands of pounds in state support every year compared to their wealthier counterparts, according to a stark new analysis.
The £7,700 Annual Benefits Gap
Research conducted by retirement specialist Just Group, using data from the Office for National Statistics (ONS), has uncovered a significant disparity in Department for Work and Pensions (DWP) payments. It shows that hard-up retirees receive up to £7,754 less in benefits annually than those who are better off.
The study defines a low-income pensioner household as one with a total gross income of around £15,003 per year. These households receive approximately £11,327 from the state, which includes the state pension and other DWP benefits.
In contrast, high-income pensioner households, with an income of about £68,561 per year, still receive roughly £17,321 in state support. The analysis indicates that middle-income retirees actually receive the most in benefits, getting nearly £150 more per week than the poorest pensioners.
Challenging Assumptions About State Support
Stephen Lowe, group communications director at Just Group, stated that the findings contradict a common belief. “These findings challenge the idea that the lowest income pensioner households get the most in State Benefits. In fact it is middle income pensioner households that receive the biggest amount,” he said.
Lowe highlighted several reasons for this shortfall. “In some cases this is because people don’t realise what benefits they can claim or assume they won’t qualify, perhaps because they own their home. Others may get less because they haven’t built up enough qualifying years of National Insurance or have missed out on extra entitlements.”
The Critical Need for Pensioners to Check Eligibility
With many older people continuing to struggle with daily living costs, the research underscores the importance of checking for unclaimed support. “Many older people still face a shortfall in meeting day-to-day costs,” Lowe emphasised. “That’s why it’s still so important that pensioners check what additional support they may be eligible for. Even a small boost in income can make a meaningful difference.”
The data, analysed from the ONS and published on 1 December 2025, presents a clear picture of an uneven benefits system where the most financially vulnerable retirees are not necessarily receiving the highest level of government support. This ongoing issue means that proactive steps to claim eligible benefits are more vital than ever for those on low fixed incomes.
