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Pension boost highlights importance of awareness

07/09/2010

The Scottish government has added more than £4 million to the incomes of 2,500 Scottish pensioners who were unaware they were entitled to more money.

Couples have received as much as £34,600 in backdated pension payments, with one retired household seeing its weekly income jump by over £310 as a result of the extra pensions funding.

However, the Scottish government warned that as much as £5.4 billion of pensions benefit remains unclaimed by men and women across the UK every year.

"It is important in the current economic climate older people claim the benefits and tax credits to which they are entitled," said Scotland's housing and communities minister Alex Neil.

"Many older people do not realise that they are entitled to extra cash. That is why it is imperative we do all we can to put extra money in their pockets."

This highlights the importance of ensuring that you give the proper care and diligence to making financial arrangements for retirement, particularly at a time such as now when a pension can provide security against unknown circumstances.

One thing that you should always do is try to sign up to a work-placed pension scheme, in addition to any private deals you might buy. This will not only allow you to automatically save part of your wage for the future, but will also leave you entitled to contributions by your employer.

Some of the things to think about when taking out a pension are whether or not it will allow you to revise the payments you make into it as your financial situation changes, whether or not you can take a non-payment period without being penalised and if there is a minimum retirement age tied to the product.

 

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