Just Group has urged retirees to double check the pension benefits they are entitled to, after finding that eight in 10 (79%) pensioner homeowners are failing to claim.

As part of its annual state benefits insight report, the firm found that on average, 79% of pension homeowners are missing out on £1,231 of extra income a year.

Furthermore, one in 10 (9%) are claiming but are receiving too little, missing out on an additional £476 income per year.

Group director at Just Group, Stephen Lowe, said: "Every year our research identifies benefits of a very significant value are not being claimed but would make a massive difference to those struggling with soaring living costs. This year the proportion who are eligible for benefits but failing to claim is at its highest since 2014, while the money they are missing out on is the second largest amount in that 10-year period.

"Nearly four in 10 households in our survey are eligible for one of the key benefits available to pensioners, but the majority are not claiming and even those who are often don’t apply for their full entitlement. Missing out on pension credit is particularly problematic because it is the gateway to a host of other benefits such as free NHS dental care, cold weather payments and a free TV licence for over-75s."

The research was based on in-depth fact-finding interviews with clients seeking advice on equity release in 2023, with 38% of respondents entitled to benefits.

The highest amount of extra income uncovered was £143.43 a week for a pensioner couple in Surrey, who were receiving no benefits. Advisers found that they were eligible for £111.30 a week in pension credit and £32.13 a week in council tax reduction, adding up to £7,458 a year in extra income.

In total, a quarter (27%) of those missing out on income were entitled to benefits worth at least £1,000.

Government estimates suggest take up of guarantee pension credit was 70% and savings credit 39% in 2021/22. Overall, 880,000 pensioner families entitled to receive pension credit did not claim, totalling around £2.1bn or £2,200 a year for each family on average.

Lowe added: "Our take-up figures for homeowners are a little lower than those published by the Government, suggesting some people who may think owning a home rules them out of receiving state support.

"Research by Just Group’s sister company HUB Financial Solutions found more than a third of over-65 homeowners (36%) have never checked their entitlement to state benefits with a further 14% unsure or unable to remember when they last checked.”

"Benefits information is integral to retirement guidance and should make clear the range of benefits available to help people who find themselves struggling for income or in poor health later in life."

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