The biggest financial worry for over a fifth (22%) of people aged 65 and over in the North West is that their savings will run out. Meanwhile almost a third (30%) have run out of money before the end of the month. That’s according to a new survey by Independent Age, the older people’s charity, to launch its new free Moneywise advice guide for older people, their families and carers.
The survey, which took place after the March 2016 Budget, found that, in the North West:
• One in six (16%) people aged 65 and over don’t expect to have the money needed to pay for their funeral
• Excluding mortgage debt, over a quarter (28%) of people aged 65 and over are in debt and the average debt is over £3600, twice as much as the national average of £1800 and the most in-debt region of the UK
• The UK city with the most debt is Manchester, with average debts of over £4000
• One in nine (11%) people aged 65 and over in the North West have debts of more than £5000
There are 11.4 million people aged 65 and over in the UK, and 1.6 million of them live in poverty – 900,000 of whom live in severe poverty.
Across Britain, pensioners who are not claiming the benefits they’re entitled to are, on average, missing out on £41 a week or £2,100 a year. Spread across the year, this is the difference between being able to pay for a typical dual-fuel bill versus struggling to heat their home. In total, £3.7 billion goes unclaimed for all benefits for older people each year.
In terms of unclaimed financial support for people aged 65 and over, the survey results show that, in the North West:
• Almost two in five (39%) have never checked to see if they would be eligible for benefits such as Pension Credit or Council Tax Reduction
• Two-fifths (40%) didn’t know they could get a 25% discount on Council Tax if they live alone
The survey also found that almost a quarter (23%) of people aged 65 and over do not have any money saved for unexpected costs, such as repairing a broken boiler or paying for a dental emergency.
One in seven (15%) of those polled in the North West would be interested in a benefits check to find out what they are entitled to, but wouldn’t know how to do it. Independent Age runs free benefits checks for anyone aged 65 and over who wants to find out more about what they might be able to claim.
The survey supports the launch of Independent Age’s new Moneywise guide, which provides practical advice and tips to older people, their families and carers on how to boost income and save money. The guide covers topics such as how to reduce bills, housing costs, travel costs, how to boost your income and understanding benefits and taxes.
Lucy Harmer, Director of Services at Independent Age, said, “These results clearly show that many older people in the North West are worrying about their finances and don’t always know who to turn to for advice. Topping up your income becomes much more difficult the older you get, but bills still need to be paid. However, there is help available. Anyone who needs more information about how to save money and boost their income should order a copy of our free Moneywise guide or call our free advice line.”
Independent Age’s top 10 money-saving tips
Tips for saving money and boosting your income taken from older people’s charity Independent Age’s latest guide: Moneywise. The full guide can be ordered for free via independentage.org or by calling 0800 319 6789
1. Find out about benefits – Nearly two out of five people who qualify for Pension Credit aren’t claiming it. If you’re eligible, you’ll not only get extra money each week, but you may not have to pay rent or Council Tax, plus you’ll get help with health costs
2. Apply for Attendance Allowance – If you have a disability or long-term health condition, you could be eligible for extra money to help with your care costs, and it’s not means-tested
3. Check you’re on the cheapest energy tariff – Switching supplier can be the best way to save on your fuel bills. Visit goenergyshopping.co.uk to get started
4. Claim Council Tax discounts – If you live alone, you’re entitled to a 25% discount on Council Tax. There are some other ways to get discounts so call Independent Age to check if you’re eligible
5. Claim free prescriptions and eye tests – Everyone aged 60 and over is eligible to receive free prescriptions and free eye tests. You may need to show proof of age if you look younger though!
6. Apply for Winter Fuel Payment – If you were born before 6 May 1953, you’ll be eligible for an annual payment of between £100 and £300
7. Claim your free bus pass – Men and women who reach women’s State Pension age can get free off-peak bus travel. If you live in London, you can get a Freedom Pass when you turn 60. If you often travel by train or coach, consider buying a senior card for 1/3 off most fares once you’re 60
8. Understand the new State Pension – The State Pension rules are changing in April 2016 for new claimants. Make sure you know what you’ll be getting under the new system by requesting a personalised statement from the Future Pension Centre (0345 3000 168)
9. Get help understanding taxes – Taxes can be confusing, so contact Tax Help for Older People if you’re on a low income or need help making sense of yours (0845 601 3321 or 01308 488066)
10. Get impartial advice – Order a copy of Independent Age’s free Moneywise guide for more tips. Log on to independentage.org or call 0800 319 6789
The Independent Age Moneywise leaflet can be ordered for free via www.independentage.org/moneywise or by calling 0800 319 6789. Free benefits checks can be arranged by calling 0800 319 6789
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