New state pension benefits received in full by less than half of eligible retirees

More than half (56 per cent) of people who reached state pension age since April 2016 do not receive the full amount of the new state pension, according to analysis from Just Group.

The financial services provider found that just 44 per cent of those who had reached retirement age since the new state pension’s introduction, around 574,000 people, were receiving the full rate.

Just under half (47 per cent) of the group received between 75 and 100 per cent of the full amount, while the remaining 9 per cent, a group of around 109,000 people, received less than 75 per cent of the full amount.

Around two thirds (65 per cent) of people who retired on the basic state pension before the rule change are in receipt of the full amount.

Just Group group communications director, Stephen Lowe, said: “Many older households are heavily reliant on the state pension and benefits. Together they make up around £4 in every £5 of income for the poorest pensioner households and around half of income for the average pensioner household.”

He noted that pensioners with incomes below a certain threshold, £173.25 for single people and £265.20 for couples, can apply for benefits to top up their income.

Lowe pointed out that government figures demonstrate that around 1.2 million pensioner households are missing out on pension credit, losing around £2,000 a year each.

The take up rates for this benefit are just 55 per cent among couples, while the benefit it claimed by 62 per cent of eligible single women and 67 per cent of single men.

Lowe noted that those aged over 75 were “less likely to claim than younger people” and said that, while applying for benefits could add thousands of pounds to annual household income, it was largely left “up to people to find out for themselves”.

    Share Story:

Recent Stories

Understanding data
Laura Blows discusses the importance of understanding data for trustee administration projects with ITM sales director, Mark Adamson

Are current roads into retirement delivering member value?
Laura Blows explores HSBC Master Trust’s recent report, Converting pension pots into incomes, with HSBC Retirement Services CEO, Alison Hatcher.

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Pension portfolios – the role of asset-backed securities
Laura Blows is joined by Royal London Asset Management (RLAM) head of sterling credit research, Martin Foden, and its Senior Fund Manager, Shalin Shah to discuss the role of asset-backed securities (ABS) within pension fund portfolios
Incorporating ESG into fixed income
Laura Blows is joined by TCW head of fixed income ESG, Jamie Franco, to discuss incorporating environmental, social and governance (ESG) strategies into fixed income portfolios