The research, carried out via the JRS customer base, shows how retirees are missing out on the equivalent to almost one month's state pension - an average per case of £232 - by not being aware of their benefit entitlement. Of the customers advised by Just Retirement Solutions, one in four (24%) were eligible to claim state benefits where nothing had previously been claimed, and a further 3% were identified as not claiming enough.
Nigel Barlow, head of research at Just Retirement said: "The lack of awareness surrounding state benefits is a real concern mainly due to the fact that information is not always readily available or easy to follow. However pensioners can considerably bolster their income by getting to grips with their entitlements which can be equivalent to getting almost one month's state pension extra per month. This would not only provide a welcome relief to those less well off but ensure that pensioners receive what is rightfully due to them. Our experience in this area is further support for the view of organisations, such as Age UK, and the report of the Work and Pensions Committee on Tackling Pensioner Poverty, that access to state benefits needs to be made much simpler.
Andrea Rozario, director general of SHIP, explained: "It is disturbing that state benefit entitlement is so poorly understood but, as far as equity release is concerned, this highlights the importance of obtaining thorough advice from a properly qualified source. The advice service should include a review of the state benefits for customers, to ensure they make the most of what they have. This is why all SHIP members will only deal with advisers who are specifically qualified in equity release and have taken their clients through a fully advised process.”
