A significant number of pensioner homeowners across the UK are failing to claim vital state benefits they are entitled to, with many missing out on more than £1,300 annually, according to a stark new analysis.
An 'Epidemic' of Unclaimed Support
Research from financial services firm Just Group has uncovered what it describes as an 'epidemic' of pensioners living on limited incomes but not accessing available funds. The study found that more than four in ten pensioner homeowners meet the criteria for at least one form of state benefit administered by the Department for Work and Pensions (DWP).
However, a staggering 74% of this eligible group are not receiving the money they could rightfully claim. David Cooper, a director at Just Group, issued a strong warning about the impact of the ongoing cost of living crisis on this demographic.
'Our survey once again reveals what appears to be an epidemic of pensioner homeowners missing out on income they are entitled to claim,' Mr Cooper explained. 'These are low-income pensioner households likely to be struggling with the cost-of-living crisis.' He further stated that more than two-thirds of those eligible were missing out on crucial financial support.
Complex System and Lack of Awareness
The problem is compounded by a complex benefits system and a concerning lack of awareness about the State Pension itself. Currently, individuals need at least 35 years of qualifying National Insurance contributions to claim the full new State Pension (nSP), with a minimum of 10 years required to receive any payment at all.
Yet, Just Group's research indicates that fewer than six in 10 (57%) adults of State Pension age or older know how many years of NI contributions they need for the full amount.
Official DWP data underscores the scale of the issue. While 4.5 million pensioners currently receive the nSP, a significant 45% (over 2 million people) do not get the full entitlement. For the 2025/26 tax year, the full nSP is £11,973. Shockingly, over 200,000 claimants receive less than half of this full amount.
Calls for Urgent Government Action
Charities and experts are now urging the government to take decisive steps to address this widespread problem. Joanna Elson CBE, chief executive of Independent Age, has called for a simplification of the application process.
'The strategy should include plans to simplify and streamline the application process,' Elson said. 'People shouldn’t have to spend hours answering hundreds of questions.'
She also proposed that the DWP should investigate automating or semi-automating certain entitlements, a move that could efficiently channel money to those in need without placing excessive bureaucratic burdens on vulnerable pensioners.
The findings highlight a critical gap in the UK's welfare safety net, where those who have contributed for decades through National Insurance are now, in retirement, missing out on essential income due to systemic complexity and poor outreach.
