Pensioners squeezed by cost of living could be ‘missing extra income’ | Personal Finance | Finance
Pensioners may be unaware that they are forgoing potentially thousands of pounds annually because they believe they are not entitled to it.
According to PensionBee expert Lisa Picardo: “The latest figures from the Department for Work and Pensions show a record number of Pension Credit applications, an encouraging sign that more pensioners are accessing vital support.
“However, with around three in ten eligible pensioners still not applying according to the government, thousands continue to miss out on extra income that could make a real difference.
“Eligibility is often wider than assumed, particularly when considering how different forms of income such as savings interest or investment withdrawals are treated within the tax system.”
New data from the DWP also reveals that nearly 78% of claims are processed within their target timeframe of 50 working days.
Therefore, if you believe you’re eligible and apply this month, you may only receive your first Pension Credit payment around mid-June.
The expert stressed the importance for pensioners to verify their eligibility, stating: “it’s more important than ever for pensioners to check if they qualify” as claiming Pension Credit could unlock additional benefits for applicants, such as discounts and essential aid as bills increase.
Pension Credit also ensures recipients receive Winter Fuel Payments for the year. This could significantly benefit those who missed out on their £200 or £300 payment the previous winter due to changing eligibility criteria.
Lisa highlighted the simplicity of the application process: “Applying is straightforward and could mean thousands of pounds in additional support each year.”
Pension Credit is the most underclaimed benefit, reportedly due to a common mistake people make in assuming they aren’t eligible without using a benefit checker, which are available online.
For the Gov.uk checker, certain information is needed including date of birth, residential status, address, other benefits, household earnings, savings, investments, and pensions.
The amount one receives from the benefit largely relies on individual circumstances, like expenses, income, and savings.
Even a mere £1 of Pension Credit allows access to other associated aids such as the Winter Fuel Payment, free TV licence for those 75 and older, council tax reductions, and assistance with specific health-related expenses.
