A significant majority of pensioners across the UK are failing to claim substantial financial support they are entitled to, with new research revealing a widespread issue of unclaimed benefits among older homeowners.
Three-Quarters of Eligible Pensioners Missing Out
According to a comprehensive report from retirement specialists Just Group, a staggering 74% of pensioner homeowners who qualify for various government benefits are not claiming the money owed to them. This translates to thousands of older individuals missing out on an average of £1,339 each year.
The research indicates that more than four in ten (42%) pensioner homeowners are eligible for at least one of several key government payouts. Despite this high eligibility rate, the vast majority are not accessing these crucial funds, even though they are likely to be living in low-income households struggling with the ongoing cost-of-living crisis.
Council Tax Reductions Particularly Underclaimed
One of the most striking findings concerns council tax reductions. Among those eligible for this specific benefit, fewer than one in four (24%) are actually claiming it. This is particularly concerning given that the average new claim value exceeds £1,000 annually.
David Cooper, director at Just Group, expressed serious concerns about these findings, stating: "Our survey once again reveals what appears to be an epidemic of pensioner homeowners missing out on income they are entitled to claim. Of those pensioner homeowners eligible for benefits, about three in four were failing to claim any benefit."
Range of Benefits Being Missed
The unclaimed benefits include several important financial supports:
- Guaranteed pension credit
- Savings pension credit
- Council tax reductions
- Universal credit
Mr Cooper highlighted the particular importance of guaranteed pension credit, noting: "Guaranteed pension credit is the main means-tested benefit for older people and a gateway to a range of other benefits such as winter fuel payment, but we found more than two thirds who were eligible were missing out."
Awareness Gap and Systemic Issues
The research suggests that a primary reason for this widespread underclaiming is a simple lack of awareness. Many pensioner homeowners are completely unaware that these benefit options exist or that they might be eligible for them.
"Our report raises serious questions about the support and guidance available to people heading into retirement and beyond," Mr Cooper added. "Benefits like pension credit are not paid automatically but must be claimed, so people need the foresight to check if they are entitled to it."
Scale of the Problem
The report provides detailed breakdowns of how many benefits individual pensioners are missing:
- 62% are missing out on one key benefit
- 12% are missing out on two benefits
- 5% are missing out on three benefits
Additionally, the research found that nearly one in seven (14%) of those who are managing to claim benefits are actually receiving too little. These individuals are missing out on an additional £1,162 per year on average.
Real Financial Impact
The financial consequences for individual pensioners can be substantial. The report documented one case where a customer was missing out on £113.03 per week, which amounts to £5,877 annually.
Mr Cooper emphasized the importance of taking action: "It's important cash-strapped pensioner households do not simply assume there is no state help available - a five-minute check could unlock thousands of pounds of income each year."
This situation highlights a significant gap between available financial support and pensioners' awareness and ability to access it, with potentially serious implications for the financial wellbeing of older people across the country.
