I just discuss with my friends about retirement planning. I’ve read an article about pensioners at telegraph.co.uk. So, I think it is better to share it :-
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An estimated 2.5 million retirees are losing out on benefits such as council tax credits, pension credits, winter fuel payments and free bus passes because they are unaware that they are eligible for them.
A fifth of all pensioners are failing to claim any benefits at all beyond their basic state pension. These people are missing out on an average of £872 a year, according to research by pensions company Just Retirement.
Meanwhile a third of pensioners are claiming some of the money, but are still missing out on an average of £676 a year, the company said.
In total, between two and three million retired people are not claiming money that is rightfully theirs.
Stephen Lowe, an executive at Just Retirement, said that many retirees are struggling to make ends meet and do not realise what they are entitled to from the Government.
Last year it was claimed that as much as £3 billion goes unclaimed in Pension Credit, which serves as a top-up to the state pension and, for most, provides a vital source of income.
Despite nine in 10 pensioners being aware that Pension Credit exists, many who are eligible for it are not claiming because they do not think that they qualify.
Official figures from the Department for Work and Pensions (DWP) earlier this year found that the take-up of Pension Credit was only between 60 per cent and 70 per cent.
It found that while 2.6 million people were claiming the money, up to 1.6 million were not.
Mr Lowe said that many people have worked all their lives and have never claimed benefits. They are therefore unaware of their entitlements or do not know how the system works.
He said: “They know about the state pension, but may imagine that because they own their own homes, often valued at more than the national average, they are not eligible for any further state help.”
Earlier this year Michelle Mitchell, charity director-general of Age UK said that a “staggering” amount of benefits are going unclaimed by older people each year.
“It is very disappointing that there has been no progress in older people not claiming the benefits they are owed. There are still 1.8 million people in later life living in poverty and claiming pension credit can make a huge difference to someone’s income and quality of life,” said Ms Mitchell.
Mr Lowe said that Just Retirement’s research found compelling evidence of a ‘squeezed middle’ of retirees who are finding it hard to make ends meet.
“The research shows a growing trend for using property assets as a way to generate regular income for day to day living rather than for one-off purchases, such as holidays or home improvements,” said Mr Lowe.
It is estimated that a quarter of pensioners struggle to pay their household bills, while one in 10 has been forced to miss one of the recommended three meals a day.
Source :- Telegraph
// What a loss from retires. I hope readers will get knowledge from the article. Need to know importance to aware of Pension Credit.