Many over-65s are not using their tax credits, and are losing out financially as a result.
The worth of pension credits missed out on each year in the UK has hit £2 billion.
According to new figures from not-for-profit organisation Unbiased.co.uk, proud pensioners seem set to pass up the tax breaks despite feeling the effects of recent price rises more than any other group. The policy was introduced for all people aged over-60, in a bid to make sure that their income does not drop below £109 per week.
However, the new report suggests that as much as 28 percent of pensioners are missing out from the windfall. Unbiased.co.uk also said that retirement savers in Britain waste around £726 million a year through overpaying tax, due to people missing out on the tax relief offered by the government within occupational pension schemes.
David Elms, chief executive of Unbiased.co.uk, said: "Failing to save for retirement has become an increasing problem for the UK population. The onset of the credit crunch has further compounded this problem, with people finding their money doesn't go as far as it used to and so tightening their purse strings."
He added: "Either through confusion or apathy millions are missing out on what is rightfully theirs, and are paying more tax than they should be. We are urging people to kick-start their pension and tax planning and to review their current situation today. A discussion with a local IFA is a great way to start this process."
