Pension specialist Just Retirement has found many pensioners are not claiming full entitlements of state benefits and are losing income.
The average amount of additional state benefit which the pensioners are entitled may be £675 a year, a survey by Just Retirement found. The survey further added that for a small number of cases, the additional benefits may exceed a staggering £2,400. People not claiming any benefits may be entitled to an additional £788 a year.
Nearly 25% of current beneficiaries are entitled to additional benefits while 20% of the retirees qualify for unclaimed state benefits.
“Since the beginning of the recession pensioners have been hit financially by higher taxes, spending cuts and inflationary pressures”, said Stephen Lowe, director-Customer Insight and External Affairs.
“Despite the fact that the Budget was less severe than expected, financial pressures for people in retirement have not eased. Considering these factors it is disturbing that pensioners are not taking the state benefits to which they are entitled”, he added.
Advising pensioners to seek professional advice, he said: “For the majority of people obtaining advice from an organisation or a person with an understanding of state benefits is the best way to ensure pensioners are not missing out on these valuable benefits”.
“I am not surprised to hear that pensioners are not claiming their entitlements”, said Alan Dick of Forty Two Wealth Management, a Glasgow based advisory firm.
Launching a scathing attack against the government, Mr. Dick said: “In my opinion the system of benefits is deliberately confusing. It needs to be made much clearer but I do not see the government launching a public awareness campaign any time soon. It does not have the money”.