UK pensioners miss out on £2.4 billion of cash

As much as £2.4 billion of pension credits will remain unclaimed this year, according to research from Unbiased.co.uk.

Even though pensioners are feeling the impact of the credit crunch on their pension pots, around one in four of them are failing to claim their full pension credits.

Pension credits are a government entitlement for people aged 60 or over, guaranteeing them an income of at least £130 a week (£198.45 for couples). But with between 19% and 28% of pensioners failing to realise their entitlements, this valuable source of income is being wasted by many retirees.

Karen Barrett, Chief Executive of Unbiased.co.uk comments: "The areas of pensions and taxation can be complex issues, but it is still important for people to claim vital sources of retirement income in the form of tax credits. Either through confusion or apathy millions of pensioners are missing out on what is rightfully theirs, and are paying more tax than they should be.  We are urging people to get their financial planning in order and review their current situation today.  A discussion with a local IFA is a great way to start this process."