Millions of pensioners are missing out on their share of £4.6 billion worth of unclaimed State benefits - and many are age-related, rather than means-tested.
Gardening, grandchildren, picnic hampers, world cruises and Werther's Originals. That's what I fondly imagine I will have to look forward to when I retire. But for the nearly two million pensioners living in poverty (5,000 with neither central heating nor sole use of a bathroom, according to 2001 census), life in retirement is a very different story. And if Dr. David Kuo's prediction is right, and rises in pensioner income over the next five years do not keep pace with inflation, things are only set to get worse.
Then again, maybe if we take positive steps now, the picture in 2012 will be different and every pensioner will have more than enough to live on and buy toffee.
So today, I'm going to concentrate on 2008 and look at how pensioners can improve their lot, right now, today.
Pensioner Poverty
According to Age Concern, one of the biggest causes of pensioner poverty is that millions of pensioners are missing out on their share of £4.6 billion worth of unclaimed State benefits. Apparently, many simply do not realise that they would qualify for help from the State (and other organisations). After all, sometimes your eligibility depends on your income, and sometimes, confusingly, it depends on your age.
To try and combat this confusion, here's a round-up of some key age-related benefits, in plain English:
Age | Benefit | Details |
|---|---|---|
60 or over | Winter Fuel Payment | Nearly 90% of all excess winter deaths are of people over the age of 65. This benefit is aimed at helping pensioners keep their homes well-heated. If you are aged 60-79, your household normally receives £200. If you are aged 80 or over, your household normally receives £300. Most people receive it automatically - but if you're a man aged 60 to 64, you will need to make a claim because you are not yet of pension age. |
60 or over | Free travel | You are entitled to free or half-price travel on public transport - check with your local council for details of the exact discount you are eligible for. |
60 or over | Free prescriptions and eye tests | You can also get free dental examinations if you live in Wales. |
60 or over | 1/3 off standard and 1st class rail fares | With a Senior Railcard, you receive a third off the cost of most train tickets for a year (but it does cost £24 and some exclusions apply relating to peak travel). |
65 or over | Attendance Allowance | If you need have a physical or mental disability or a terminal illness, and need help with personal care (eg dressing and washing) and/or supervision (to keep you safe), you can get £43.15 to £64.50 a week. |
70 or over | Due to a Government scheme, British Gas will offer to install insulation free of charge to anyone aged 70 or over, regardless of whether or not they're a British Gas customer. | |
75 or over | Free TV licence | No need to throw any more money down the tube! |
78 ½or over | Free passports | If you were born on or before 2nd September 1929, you are eligible for a free standard 32-page ten year passport. |
You are also, of course, entitled to the Basic State Pension once you reach 60 (if you are a woman) or 65 (if you are a man), as long as you have built up enough `qualifying years'. A qualifying year, in civil-servant speak, is a year in which you have paid National Insurance contributions (or they have been paid on your behalf, for example, because you were receiving benefits at the time). Women need 39 qualifying years and men need 44 to receive the full Basic State Pension.
You may also be entitled to an extra form of income called Pension Credits if you meet the following requirements:
Type Of Pension Credit | Must Be (Age) | Must Be (Income) | Amount Of Money You Receive If You Qualify |
|---|---|---|---|
Guarantee Credit | 60 | Single: your weekly income is below £119.05. Couple: your joint weekly income is below £181.70. | Single: the difference between £119.05 and your total weekly income. Couple: the difference between £181.70 and your joint total weekly income |
Savings Credit | 65 | Single: your total weekly income from pensions, savings and investments is between £87.30 and £167 a week. Couple: your joint weekly income from pensions, savings and investments is between £139.60 and £245 a week. | Single: £19.05 a week. Couple: £25.26 a week. |
Still with me? Good, because there are further benefits available for low-income pensioners who receive pension credits:
- Cold Weather Payment (an additional £8.50 a week when the average temperature has been, or is expected to be, 0 degrees or below for a week).
- Free NHS dental check-ups and treatment
- Vouchers towards the cost of glasses
- Repayment of travel costs to hospital/for treatment
- Free wigs and fabric supports
Even if you don't qualify for Pension Credits but have less than £16,000 in savings, you can get help paying your council tax and your rent, and may still qualify for help with health costs.
Don't despair if this all seems very complicated. You can use a Pensions Calculator to help you and there's more about pension credits on the Direct.Gov website and more about benefits in this booklet, More Money In Your Pocket. And you can get expert advice on the benefits you may be entitled to from your local Age Concern branch, along with practical, one-on-one help filling in all the forms.
Hopefully, if more pensioners take advantage of all the financial help available to them, pensioner poverty will decrease, not increase, by 2012. You can do your bit by printing out or forwarding this article to all the pensioners you know!
> Visit our Retirement and Pensions homepage to read more pensions articles!
This article first appeared in an email.