For those clients considering taking out equity release to ‘top up’ their retirement income we, at Equity Release Scotland, always ensure we check their benefit entitlements as part of the process.

There are several financial benefits and entitlements available to seniors in the UK that can provide them with essential support to manage their living expenses through retirement. Some are means tested and some are not.

‘Means tested’ means that any benefit you may receive is subject to how much you earn and how much savings you already have. Examples of these benefits include Pension Credit, Heating Benefits, Housing Benefit, TV Licence Concessions, Council Tax Support, and Government help for energy bills. Examples of benefits which are not means tested are Personal Independence Payments (PIP) which replaced Disability Living Allowance (DLA) and is generally for people under state retirement age and Attendance Allowance which is for seniors with a physical or mental disability who have attained pension age and need help with personal care or to remain safe.

In other words, no matter what you have in the bank and how much you earn you would still be eligible for these types of benefits based solely on your health needs. Some benefits become available depending upon the age you are. For example, travel concessions on attaining 60 years old in Scotland and London are automatic, it becomes free in the rest of England on attaining retirement age. You may qualify for a free or discounted TV licence too if you are already receiving pension credit or are over the age of 75.

Seniors who struggle to pay their heating bills may be eligible for Heating Benefits. Housing Benefit and Council Tax Support are available to seniors who need help to pay their rent or council tax. Seniors who require help with urgent or one-off expenses can apply for a range of grants, including Funeral Expenses Payment and Cold Weather Payment.

In addition, seniors who need support with their energy bills can apply for the Government’s Warm Home Discount Scheme, which provides a one-off payment towards electricity bills during the winter months. By accessing these benefits, seniors can significantly reduce their living expenses and enhance their quality of life.

Despite the availability of these benefits, billions of pounds go unclaimed every year due to lack of awareness or confusion about eligibility criteria. To ensure seniors are not missing out on financial help, it is absolutely crucial to check eligibility criteria for all available benefits and entitlements, seek the correct advice from a reputable financial advisor or citizen’s advice bureau, and regularly review and update any claims.

If you are already in receipt of means tested benefits and are considering taking funds by way of equity release, it’s also vitally important that the amount you take does not affect your entitlement to these benefits. Another very good reason to take the advice of a reputable financial adviser.