Millions of UK Pensioners Missing Out on £1,339 a Year in Unclaimed Benefits

State pensioners are losing out on an average of £1,339 a year because many are not claiming benefits they are entitled to, according to research by Just Group. The study found that around seven in ten pensioner homeowners have not claimed their full state support.

David Cooper, a director at retirement specialist Just Group, said the findings highlight a widespread problem of pensioner homeowners missing out on vital income. He explained that although 42% of pensioner homeowners are eligible for some form of benefit, roughly three-quarters of them are not claiming anything at all. These are typically low-income households that may be under pressure from the ongoing cost-of-living crisis.

The research showed that Guaranteed Pension Credit, the main means-tested benefit for older people and a key route to other support such as the Winter Fuel Payment, is particularly underclaimed. More than two-thirds of those who qualify for it are not receiving it. In addition, nearly one in seven pensioners who do claim benefits are getting less than they should, missing out on an extra £1,162 a year.

The unclaimed or underclaimed support includes Guaranteed Pension Credit, Savings Pension Credit, Council Tax Reduction and Universal Credit.

Mr Cooper noted that benefit take-up among homeowners appears to be lower than national averages, suggesting many believe owning a home automatically disqualifies them from state help. He said this raises concerns about the level of guidance and support available to people approaching and living in retirement.

Because benefits such as Pension Credit are not awarded automatically, pensioners must actively apply for them. Mr Cooper urged older households not to assume they are ineligible, pointing out that a quick check could unlock thousands of pounds in additional income each year. Pensioners can use the benefits calculator on GOV.UK to see what support they may be entitled to.