Free-thinking pensioners missing out on benefits
THE over-65s focus too much on “freebie” state benefits such as bus passes or free prescriptions and miss out on some of the most generous pensioner benefits as a result.
Pensioners know far more about the free bus pass, free prescriptions, winter fuel payments and the free TV licence than a far more valuable benefit called pension credit, according to the new State Benefits Index from Just Group.
Freebie benefits are worth between £2.08 and £18.03 per week each, but pension credit is worth more than £59 a week for those who claim it - or £3,068 a year.
Pension credit is a top up for those on the lowest incomes, ensuring everybody past state pension age gets at least £177.10 income in total.
Government statistics reveal that around a million eligible pensioners fail to claim it, while around 200,000 eligible pensioner households fail to claim housing benefit, which provides help with rent payments.
Disability living allowance and council tax reduction are also less well known but worth far more than the freebies, said Just Group communications director Stephen Lowe. “Pension credit could pay for your annual medical prescription season ticket 26 times over. While the annual value of the higher band of attendance allowance would fund 30 yearly TV licenses.”
Lowe said do not fixate on freebie benefits: “Our research shows that nearly all over 65s know about them but their financial value is dwarfed by other less well-known benefits.”
He added: “Checking entitlement should be as much a part of retirement planning as understanding what your private pension and other savings will provide.”