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Pensioners seeking equity release failing to claim state benefits

Research from Just Retirement Solutions, the specialist financial advice arm of the Just Retirement Group, reveals that more than half of the customers seeking advice on equity release are failing to claim any or all of the state benefits they are entitled to.

Just Retirement’s research found:

* 20% were failing to claim any benefit, up from 18% in 2010

* On average these people are losing £872 a year, with the biggest loss £8,766

* 34 % are receiving some, but not all their benefits, up from 26% in 2010

* On average these people are losing £676 a year, with the biggest loss £1,408

Stephen Lowe, director at Just Retirement, says: “The figures provide more compelling evidence of a ‘squeezed middle’ who are finding it hard to make ends meet.

“They tally with official figures showing it is mainly home owners on low incomes who are missing out.”

Earlier this year, the Department of Work and Pensions released figures showing that at around one-third of those entitled to Pension Credits fail to claim.

The total income lost is between £2bn and £2.8 bn a year. Its figures show that of those who fail to claim, a whopping 78% are owner occupiers.

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  • David Pye 6th June 2012 at 10:39 am

    I might be missing something her, but why would someone with “substantial capital tied up in savings accounts” need to enter into an equity release arrangement?

  • M James 4th June 2012 at 3:42 pm

    The article in incorrect as the reason why so many pensioners do not claim pension credit is because they have substantial capital tied up in savings accounts such as ISA’s, shares and other such investments dotted around the place and if declared would NOT be entitled to pension credit as they have to much income as a whole. Yes they may well be below the threshold based on their monthly income however well over the limit if capital is taken into account, this is the reason why they do NOT claim, no one is that stupid as to not take FREE CASH if offered to them that is why fraud is so rife with all welfare benefits.

  • Simon Town 4th June 2012 at 3:30 pm

    Interesting if not surprising…

    I wonder how many of these get advice on what they are entitled to or at least a referal to the CAB from their advisor…