A new report on mis-sold pension claims shows that 10% of retirees entitled to pension credit have failed to claim the benefits and have not been included in the over £3.5 billion of state assistance. The pension credit factors in all the savings. It also makes sure that individuals and couples receive a minimal level of income during retirement, and it comes into two portions: savings credit, and guarantee credit.
According to a recent report by “DWP- Department for Work and Pensions,” nearly 64% or 6 out of 10 retirees succeed to make the claims in 2016/2017. Nearly 40% or 1.3 million households missed out. The DWP report pointed out that over £3.5 billion has not been claimed to amount to £2,500 each year per household. DWP also affirmed that the take-up might have been affected by several factors like stigma associated with receiving the benefit, lack of awareness, and attractiveness of the benefit.
The 64% take-up benefit was higher than the 47% take-up of savings credit which was quite lower to people receiving the guarantee credits, and those entitled to the credit have received a significantly higher average weekly amount of £68 compared to those receiving and entitled to the saving credit of £7. According to the same report, take-up pension credit for citizens aged below 75 is quite higher (61%) compared to those aged 75 and over (59%).
Singles of either sex who can claim stand at 63% while 50% of the couples are less likely to file the claims. The comprehensive report on mis-sold pension claims shows that the guarantee report continues to top up the weekly income to £248.80 for retired partners and £163 for a retired single. The oldest partner must first have reached the “pension credit qualifying age” to make the claim depending on the provided dates of birth.
However, from Oct this year and by Oct 2020 it is legally equal to the stipulated state age pension for women aged 65 and 66 respectively. Savings credit is an additional payment created to reward those who saved some funds for retirement but would still receive lower benefits as an outcome. The payment will amount to £14.99 per week for couples and £13.40 per week for singles. However, eligible applicants must be aged 65 or more.
Majority of UK citizens who reach the state pensionable age after April 6, 2016, will not be eligible for saving credit claims. The tested pension credits are now available to those pensioners receiving lower than £243.25 and £159.35 each week for couples and individuals respectively. The latest figures issued by the government show that almost 2 million pensioners enhanced their retirement funds utilizing the benefit claiming nearly £6 billion in 2015 and 2016. Since over £3.3 billion is still unclaimed, most are still missing out.
According to the Pension Minister, Guy Opperman, the unclaimed billions are still safe and neighbors, friends, and relatives can still claim their entitled Pension Credit. The mis-sold pension claims will help to reduce poverty levels of pensioners and better their daily life.