Thousands of pensioners struggling on incomes that fail to cover their living costs are being warned to double-check their entitlement to State benefits after new figures reveal more than half could be missing out on much-needed cash.
The survey by specialist retirement intermediary Just Retirement Solutions found that more than half of its clients were either failing to claim any benefit (41 per cent) or their full entitlement (13 per cent). Nearly two-thirds of the clients were eligible for at least one benefit. Of those, one-in-five were under-claiming and three-in-five were failing to claim at all, leaving just a fifth claiming the correct amount.
The average amount of lost income was £687 a year but in one case a client was missing out on £3,244 a year or more than £62 per week.
Figures for 2013, the fourth year it has compiled the data from clients seeking advice on equity release, show a near-doubling in the number of people failing to claim any entitlement and a rise in the value of lost benefits. While the proportion of cases where additional benefits were identified fell, the amount they were failing to claim rose sharply.
“The economy may be picking up but these figures suggest more than half of pensioners might not be taking every step they can towards making ends meet,” said Stephen Lowe, Just Retirement’s group external affairs and customer insight director. “Many are missing out on hundreds of pounds a year that could make a real difference to their standard of living and peace of mind.”
The research from Just Retirement Solutions, based on data gathered last year from client fact finds carried out by professional intermediaries, shows:
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|
2013 |
2012 |
|
Cases where totally new claims identified |
41.04% |
22.76% |
|
Average value of totally new claims identified p.a. |
£770.29 |
£649.57 |
|
Cases where additional claims identified |
13.15% |
32.52% |
|
Average value of additional claims identified p.a. |
£372.53 |
£212.97 |
“The research highlights a couple of clear themes,” said Stephen Lowe. “The most important is that far too many are not claiming anything when they are entitled to financial help. Less than a quarter of our clients receive some benefit when more than half should be claiming. One reason for this could be that people struggling for income or with debt perhaps don’t think they will be entitled to State help because they own their own home.
“The second theme is that of those who are claiming, more than half of them should be getting more – in some cases, a lot more. When we analysed their entitlement we found that those claiming should, on average, be getting £372 a year more which is much higher than the previous year’s figure.
“The message is that even pensioners who own their homes should not just assume they are not eligible for financial support. These are often people who have worked for many years and paid for their own homes while staying outside the benefits system.
“Now they are older, the system probably seems complicated but it is worth finding the time and perhaps seeking professional help – from a Citizens Advice Bureau, online via direct.gov.uk or from a professional intermediary – to double check.”
Looking at the individual State benefits for older people:
- Guaranteed Pensions Credit is most likely to be claimed – three-quarters of those eligible to claim were claiming. But of those failing to claim or under-claiming, the average loss was £774 a year.
- Savings Pension Credit was only claimed by 43 per cent of those who were eligible. Those failing to claim or under-claiming were on average missing out on £481 per year.
- Council Tax Benefit was claimed by just 37 per cent of those eligible to claim. The average loss to those failing to claim or under-claiming was £599 a year.
Official figures put the take-up rates of Pension Credit and Council Tax Benefit at about twothirds, with the amount unclaimed somewhere between £3.6 billion and £5.2 billion each year. Overall, nearly nine in 10 pensioner couples and around two-thirds of single pensioners own their own homes.
Stephen Lowe said: “Each year this survey has highlighted the same message – pensioners shouldn’t assume the financial support isn’t available, make sure you check so you know for sure. More than half of our clients who did that received a very pleasant surprise.”
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