The lowest income group of pensioner households receive, on average, less state pension than all other higher income groups, according to analysis from Just Group.

Its analysis of the latest Office for National Statistics (ONS) figures showed that pensioner households of the lowest incomes also receive less from other benefits compared to higher incomes, excluding only the group with the very highest incomes.

For instance, pensioner households on the lowest incomes receive an average of £8,256 in state pension, alongside an average £1,721 in other cash benefits, to make a combined state support of £9,986 a year.

The next lowest income subset meanwhile, receive an average £14,232 state support a year, representing a £4,246 disparity between the two groups.

Furthermore, those on the highest incomes receive £12,597 a year from the state, a £2,611 increase on that received by those on the lowest incomes.

Just Group stated that, following the findings, information on state benefits for retirees should be given higher priority within the guidance provided by Pension Wise.

Commenting on the research, Just Group group communications director, Stephen Lowe, added: “The common assumption is that those with the lowest incomes get the most State help but that’s not what the reality is.

“Even if you exclude state pension income and just look at other cash benefits, people with the lowest incomes still receive less than all but those in the very top income bracket."

The group also highlighted the high proportion of home ownership amongst those on the lowest incomes, with more than 80 per cent of those in the lowest income group owning their homes, a higher proportion than all but the very highest income group.

Lowe stated that homeowners struggling on poor incomes may be most likely to be missing out, stating that this may be because they think the value tied up in their homes means they are not eligible for other benefits.

He continued: “Government figures show that about 1.2 million households fail to claim about £2.5bn a year in Pension Credit, equal to more than £2,000 income for each household.

“Retirement planning is not just about making good choices with pensions, but also understanding the wider context of retirement and what other support is available.

“Homeowners in particular appear less likely to claim their eligible benefits so could benefit from a reminder at this key time of their lives.”

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