Published On: Thu, Oct 10th, 2019

Pension: Which UK pensioners are receiving most state support | Personal Finance | Finance

The poorest fifth of UK pensioners are receiving less financial State support than any of their richer counterparts, the Just Group research shows. Based on an analysis of three years’ data from the DWP’s Pensioner Income Series (2015 to 2018), Just Group found that the poorest fifth of single pensioners are receiving annual benefits – including the state pension – of £7,644. Meanwhile, retirees in the second richest quintile receive an additional £4,000 in financial support form the state – 53 per cent more per year compared to those with the smallest incomes. In the top quintile, pensioners receive around £2,500 more than the poorest, despite their annual income being £25,000 higher.

Stephen Lowe, group communications director at Just Group, said: “The State Pension forms the bedrock of retirement finances for the majority of pensioners and these figures reveal just how much the poorest rely on it, as well as other benefits ranging from Pension Credit to the winter fuel allowance.

“Millions of pensioners are dependent on this State support but still their income falls some way short of the Joseph Rowntree’s Minimum Income Standard of £10,452 a year for a single pensioner.

“State Pension Shortfall Day was reached 42 days ago, the point in the year when the full State Pension entitlement would only support living costs for the average single pensioner until the end of August.

“Beyond this point in the year, retirees on an average rate of expenditure would need to fund the final four months of the year through their own purse or additional support from the State.”

Meanwhile, the poorest pensioner couples obtain £12,168 per year in benefits, the analysis suggests.

This is £500 less per year than the top quintile, and £2,652 less than retired couples in the middle quintile.

Mr Lowe pointed to Just Group’s data obtained from working with pensioner homeowners as evidence that some may be able to boost their income simply by claiming their full Benefits entitlement.

He said: “We found when delivering advice that half of all pensioner homeowners are not claiming any benefits beyond the State Pension and a further fifth are not claiming their full entitlement.

“Many assume that because they own their property they are not entitled to extra support, but we would encourage all retirees to check whether they are eligible to additional income which could be worth thousands of pounds each year.

“A good online source is but Citizens Advice and other charities might also be worth contacting.”

The state pension can be claimed once an eligible person has reached state pension age.

It’s possible to get a state pension forecast online via the “Check your state pension” tool.

Should a person reach state pension age in more than 30 days, they can call the Future Pension Centre and ask for a statement, or fill in the BR19 application form and send it in the post.

A state pension recipient may be able to claim Pension Credit – which is an income-related benefit that it made up of two parts: Guarantee Credit and Savings Credit.

The former amount tops up one’s weekly income if it’s below £167.25 for single people or £255.25 for couples.

Savings Credit is an extra payment for those who saved some money towards their retirement. People who reached state pension age on or after April 6 2016 may not be eligible for Savings Credit.

Source link

Most Popular News