Nearly a million over-65s in the UK are missing out on valuable Pension Credit benefits, with financial experts estimating that around 850,000 individuals who are eligible for the scheme are not claiming what could amount to thousands of pounds in extra support. The Department for Work and Pensions (DWP) administers Pension Credit, aimed at providing vital financial assistance to retirees. According to experts, some pensioners could be missing out on as much as an additional £2,677 per year, with potential benefits totalling up to £10,000 annually.
Personal finance expert Fiona Peake from Ocean Finance highlights the significance of Pension Credit for those on low incomes in their retirement years, stating that the benefit is often under-claimed despite its potential to make a substantial difference in the lives of older individuals. She explains that Pension Credit consists of two main components – Guarantee Credit, which ensures a minimum income level per week, and Savings Credit, an additional payment for those who saved toward retirement before April 6, 2016.
In addition to the financial support provided by Pension Credit, there are various additional perks and benefits available to recipients. Peake emphasises that these extras can amount to significant value, potentially reaching up to £10,000 annually per person. Despite the misconceptions surrounding the complexity of the claiming process or eligibility criteria, Peake stresses that individuals should take the time to explore their potential entitlement, even if they believe they may not qualify due to savings or other factors.
The ongoing cost of living challenges faced by many older individuals add urgency to the need for claiming Pension Credit. Peake warns that rising energy costs and food inflation can further strain fixed incomes, making it essential for pensioners to access the support available to them. By utilising resources such as the Government’s Online Calculator or contacting the pension credit helpline, individuals can quickly assess their eligibility and explore avenues for additional financial assistance.
Peake underscores that even those whose income slightly exceeds the threshold for Pension Credit may still qualify for extra support, particularly if they face circumstances such as disability, caregiving responsibilities, or significant housing costs. By taking proactive steps to review their financial situation and explore available benefits, older individuals can protect themselves against the financial pressures of living expenses and unexpected increases in costs.
The simplicity of the claiming process and the potential for unlocking valuable support underscore the importance of investigating Pension Credit eligibility. Peake encourages individuals to invest a few minutes in verifying their status and exploring other money-saving strategies, such as energy bill assessments, provider switches, or budgeting tools. By accessing the resources and benefits available to them, pensioners can better navigate economic challenges and secure their financial well-being in the long term.
In conclusion, the underutilisation of Pension Credit among eligible individuals highlights the need for awareness and proactive engagement with available support systems. By encouraging older people to explore their entitlements and claim what they are due, financial experts aim to empower retirees to mitigate the impact of economic uncertainties and rising living costs. Through simple steps like eligibility checks and utilising online tools, pensioners can access valuable financial assistance and safeguard their financial stability during their retirement years.