Pensioners failing to claim benefits
06 June 2012
To make the most of your retirement income, it is important to find the best pension plan possible. You can compare pensions with Money Expert.
An average of £872 a year is being lost by pensioners who are missing out on a variety of benefits, including Pension Credits.
The figures from Just Retirement show that the numbers of those failing to claim benefits has inched up by 2% since 2010, with the biggest loss standing at £8,766.
Of the 34% of pensioners who claim some, but not all, or their benefits, an average of £676 is being lost from their pension pots each year. The largest loss amongst this group is £1,408, with the percentage of retirees making partial benefit claims soaring from 26% in 2010.
“The figures provide more compelling evidence of a ‘squeezed middle’ who are finding it hard to make ends meet. They tally with official figures showing it is mainly homeowners on low incomes who are missing out,” said Stephen Lowe, of Just Retirement.
“It may be tempting to blame this on today’s low savings and pensions returns or high pensioner inflation, but the reality is that more people are retiring on pension funds that are simply too small to sustain them,” he added.
Recent research by Age UK has shown that pensioners are missing out on £5.5 billion in benefits, with 1.6 million pensioners failing to take up their Pension Credit entitlement. According to the charity, this has led to 1.8 million pensioners living in poverty.
According to the findings of a recent report from the Pension Policy Institute (PPI), half of those who are aged between 50 and the State Pension Age (SPA) will have to work between six and 11 years past SPA in order to make ends meet.
You can compare pensions with Money Expert.
Being on a small Works pension of £8,900 after having to retire early (57) due to ill health and being unable to claim any form of state benefit no wonder all this money goes unclaimed
Kelvin Lewis | Glynneath | 9 Jun 2012