You are here: Home - Retirement - Retiring now - News -

The mistake costing British pensioners thousands of pounds a year

0
Written by:
13/01/2020
Two-thirds of pensioner homeowners are missing out on thousands of pounds of extra income by failing to claim their full entitlement of state benefits, new research suggests.

Of pensioner homeowners entitled to receive benefits, nearly half (46%) claim nothing, meaning they miss out on an average of £1,423 a year per household, up from £1,139 in 2018.

A further 18% claim but receive too little, each missing out on £2,102 a year, according to the study by retirement firm Just Group.

The key state benefits pensioners can claim are guarantee pension credit, savings pension credit and a council tax reduction.

Guarantee pension credit has the highest take up rate of the three benefits with 85% of pensioners claiming it. This credit tops up your weekly income if it’s below £167.25 (for single people) or £255.25 (for couples).

Those failing to claim miss out on an average £1,690 a year.

Savings pension credit, which is an extra payment from the government available to people who’ve saved for retirement, has the lowest take-up rate of just 21%, with those failing to claim losing £453 a year.

Council tax reduction is claimed by 42% of eligible people. Those who fail to claim lose out on an average of £801 a year.

Stephen Lowe, of Just Group, said: “Our survey once again shows that meaningful sums of money that would make a huge difference to people’s lives are not being claimed.

“The low level of take-up for some of the key benefits raises some serious questions about the support being given to help people navigate the complexities of the benefits system.”

For the two elements of the pension credit, the government estimates around 1.3 million families are failing to claim up to £3.5bn a year.

Lowe said: “Our figures focusing on homeowners raise questions about whether homeowners are less likely to think they are eligible so less likely to claim, or whether the guidance or information is not there to help them claim or to allow them to check they are claiming the right amount.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The mistake costing British pensioners thousands of pounds a year

Two-thirds of pensioner homeowners are missing out on thousands of pounds of extra income by failing to claim...
The mistake costing British pensioners thousands of pounds a year

Santander to cut interest rate on 123 account to 1%

Santander is to slash the interest rate on its popular 1|2|3 current account from May, and will also overhaul...
Santander to cut interest rate on 123 account to 1%

Savers are better off with building societies than banks, says research

Building societies continue to pay better rates on savings accounts than banks, analysis shows.
Savers are better off with building societies than banks, says research

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Privacy Preference Center

Necessary

Advertising

Analytics

Other

Read previous post:
Rents rise above inflation as tenant demand grows

Average rents in the UK reached £953 per calendar month in December – a rise of 3.5 per cent compared...

Close