Pensions - Articles - Pension income improving but many don't claim pension credit

 The Office for National Statistics said on Wednesday (17th) median income for retired households in 2015/16 was £21,500, about £1,700 higher in real terms than for 2007/08 before the “credit crunch” hit the global economy. In contrast, non-retired household income was £29,200 which remains £400 below its 2007/08 levels.*

 “Overall the recovery in pensioner incomes is positive but we remain concerned that those at the lower end of the scale are losing out by failing to claim key benefits such as Pension Credit,” said Stephen Lowe, group communications director at Just Retirement.

 “There are about 2 million people claiming Pension Credit according to yesterday’s figures ** but we also know that about four in 10 aren’t claiming – that adds up to 1.4 million families and about £3.1 billion each year.”***

 He said that take up of Pension Credit was far lower among couples (55 per cent) than among single pensioners either male (67 per cent) or female (64 per cent). Take up is also higher among pensioners aged under 75 (65 per cent) than those aged 75+ (60 per cent).

 “The latest figures echo the findings of our research earlier this year that suggested the numbers of pensioner homeowners missing out on State benefits had risen for the fifth year running,” he said.

 “Our worry is that rising average pensioner incomes is clouding the issue that some groups are missing out on State support that could make a big difference to their lives. Our research is based on the cases of real clients who in many cases don’t claim any benefit or, even if they are claiming, are not claiming their full entitlement. On average they are missing hundreds of pounds each year, but in some cases it is thousands.”

 Stephen Lowe said that pensioners who are struggling for income should not assume no State help is available but should check with people who have the right expertise, such as contacting Citizens Advice or a professional intermediary, or should check online via direct.gov.uk.