The vast majority (79%) of pensioners surveyed aged 66 and over claim they are financially savvy, new findings from Royal London reveal, as almost two fifths (38%) go as far as regularly switching providers in order to reduce their bills. The data shows that 93% use various benefit, offer and discount schemes available to them at retirement, with bus passes (76%), and free eye tests, prescriptions and dental care (66%) topping the list.
Female pensioners are especially on top of their finances as more than three quarters (76%) say they make the most of the discounts available to them now that they are retired, compared to 68% of men. Yet, one huge benefit is left behind, as two fifths (40%) of pensioners haven’t yet checked if they qualify for Pension Credit this year, which is partly due to the social stigma associated with benefits, as 44% are conscious that claiming them can be viewed negatively.
As a result, more than a fifth (21%) aren’t aware they would be entitled to other benefits if they qualified for Pension Credit. Most (93%) don’t know they can get a discount on the Royal Mail redirection service if they move house, making it the least known additional benefit that people who qualify for Pension Credit may also be entitled to, while 41% could be missing out on a free TV licence if they are 75 or older.
As part of its Take The Credit campaign, Royal London is partnering with social enterprise Pocket Power to offer pensioners a free phone call, offering a bill switching service, helping them save on their household bills and wider costs and to support with Pension Credit applications. On average, a Pocket Power call saves each person £250, which could provide critical support this winter.
Sarah Pennells, consumer finance specialist at Royal London said: “It’s great to see pensioners are savvy on so many levels, with many taking steps such as changing energy providers to limit their outgoings. However, there is still a significant gap in awareness around Pension Credit and the other benefits that claiming it entitles people to. This is the case despite all the media coverage of the Government’s decision to limit the Winter Fuel Payment to pensioners on Pension Credit. Approximately three quarters of a million pensioners are missing out on vital financial support, but also potential access to help with rental costs, NHS prescriptions and a reduction in their Council Tax.
“Our research shows there is still a sense of embarrassment associated with applying for benefits, when there should be absolutely no shame in accepting help. We want to empower pensioners to claim the financial help they are entitled to. The easiest way to check if you qualify for Pension Credit is to use one of the free online calculators, and, once you know that you can claim, you can apply via the website, post or phone.”
The top six schemes, offers or discounts pensioners use to support their finances:
1. Bus pass - 76%
2. Free eye tests / prescriptions / dental care - 66%
3. Discounts at shops (e.g. Iceland offers special discounts for over 60s) - 22%
4. National Rail senior railcard - 21%
5. Senior membership rates at attractions (e.g. National Trust membership) - 16%
6. Warm Home Discount (which gives you £150 off your electricity bill) - 15%
The top six benefits pensioners don’t realise they would be entitled to if they qualified for Pension Credit:
1. A discount on the Royal Mail redirection service if you move house - 93% unaware
2. Help with rent costs through Housing Benefit - 57% unaware
3. Help with NHS dental treatment, glasses and transport costs if you get certain types of Pension Credit - 47% unaware
4. Help with Council Tax through the Council Tax Discount - 43% unaware
5. A free TV Licence if you're aged 75 or older - 41% unaware
6. Help with energy bills through the Winter Fuel Payment - 32% unaware
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