Participants in the financial industry have attempted to find the poorest retirees in the country to encourage them to sign up for a retirement loan.

Under the slogan “Pension loan is for you!” they seek to use the vast resources of private sector data to identify and come to the aid of older people with limited savings and incomes who are likely to suffer the most from rising cost of living.

In the long run, the retirement panel, scheduled to launch in 2025, will mark “free money,” while financial firms will work to automate applications, says influential industry veteran Henry Tepper.

Retirement Loan: To apply, you must be over the retirement age and live in the UK

The pension loan increases the weekly income to a minimum of £ 182.60 for single people and £ 278.70 for couples.

But Tupper also stresses that it’s a “door to more” because you can earn thousands of pounds on top through housing assistance, heating, municipal tax, television licenses and other bills.

The Department of Labor and Pensions has tried to publish a pension loan and currently has a working group dedicated to these efforts.

Tepper recently joined the task force after publicly challenging current “weak” tricks and said he would encourage the private sector to help clean up and automate the system.

How to apply for a retirement loan

You can apply on your own by phone, online or by mail, or a friend or family member can do so on behalf of an older person.

You can call 0800 99 1234, order online hereor learn how to apply by mail here.

Charities also have additional useful information.

Age UK has a help page hereand a toll-free national counseling line on 0800 169 65 65, where staff will check to see if you are getting everything you are entitled to, including a pension loan and attendance allowances.

The Civil Advice Bureau offers assistance here.

Many seniors are unaware of a retirement loan, do not know how to apply, or are unwilling to accept benefits.

Approximately 850,000 families – about one in three eligible for benefits – are not eligible for £ 1.7 billion in aid and are admitting it.

This prompted Tepper to launch a private-sector initiative with Gareth Morgan, head of benefits consultant at Ferret Information Systems, and the couple has already received support from Virgin Money, technology firm Inbest.ai, software and social policy analytics Policy in Practice and Charity. for the elderly Independent Age.

Tapper and Morgan have compiled a preliminary report on the intensification of the use of pension loans and are working on a full feasibility study, which they intend to submit to the DWP.

Like, the government has assembled 30 strong working groups on pension lending, all but three from the public sector – and until the two of them were asked to participate, only one person came from the private sector.

The report says the private sector lacks two things in the public sector: data and financial resources.

Meanwhile, it notes that local authorities in Islington, Gravesham in Kent, Manchester and Bolton have launched targeted projects to obtain pension loans, using information from the administration of benefits received in the Policy in Practice.

“The main constraints to scaling this work are barriers to data sharing within DWP, as well as boards that have the resources and capacity to run effective campaigns,” the report said.

It adds that Virgin Money is collaborating with the Turn2Us information website to help people make sure they don’t lose, and Inbest.ai uses customer data to identify and help people eligible for unclaimed benefits.

Tapper, who heads the industry network platform Pension Playpen, says of his project and Morgan’s project: “It is a call to the UK’s top influencer, charities, banks, insurers, pension funds, utilities and other services that support retirees. support “Retirement loan – it’s for you!” companies.

Many do not even guess that a pension loan exists. Many women. Some may be poor and housing rich and feel they won’t be eligible, but you can’t buy sausage for bricks

“With the current cost of living crisis, the sense of urgency can’t be greater.”

About those who missed, he adds: “Many will not know that a pension loan even exists. Many women. Some may be poor and housing rich and feel they won’t be eligible, but you can’t buy a sausage for a brick.

Moreover, a pension loan is a “door to more”, supplementing what people receive from the state, to a level close to a full state pension, while opening many smaller state pensions to receive housing, fuel and even free TV license.

“So far, the private sector has been reluctant to use its money and the data it has to guarantee replenishment of pensions. With the support of the Minister of Pensions, we are working to attract as many organizations and supporters as possible to help these 850,000 families gain access to money and other support that they probably desperately need. ”

Henry Tapper:

Henry Tepper: “With the current cost of living crisis, the sense of urgency can’t be greater”

Pensions Minister Guy Opperman says: “We want to ensure that retirees receive all the support they are entitled to, and continue to work closely with stakeholders and others to raise awareness of pension lending.

“The latest figures show that the use of pension loans is at its highest level since 2010, and the number of new claims in 2021 is 30 percent higher than in 2019.

“However, I know what still needs to be done and I look forward to the recommendations received from the feasibility study.”

Who can apply for a retirement loan but cannot?

You must be over retirement age and live in the UK to apply.

Tupper says women are more likely to fall into 850,000 families who are not claimed because most men receive a state pension in full, but many women do not.

People who have “poor incomes but rich housing” are also more likely to miss it because owning your own home doesn’t mean you have enough to live on, he adds.

Tupper notes that homeowners who are eligible for a retirement loan are much less likely to receive it than tenants.

He believes that the main reasons for the rejection of claims are:

– Not knowing that there is a pension loan

– Knowing about it, but I think it’s not for you

– Embarrassed, thinking that filing an application could nullify other benefits.

“Pension loan is for you!”: How can the private sector help?

In a new briefing, Tupper and Morgan describe three ways businesses can help increase the use of retirement loans.

1. Banks, insurers and pension providers can identify customers who are potentially vulnerable, the report said.

They have low incomes, low contributions, low balance, and they can’t afford advice.

Vulnerable clients older than the state retirement age can be encouraged to apply for a retirement loan.

In the short term, financial services companies can use data analytics that are commonly used to identify customers who have savings funds, and now identify customers with limited savings and private income.

2. In the medium term, Art pension panel will compile a consolidated statement of income and savings from public and private pension schemes.

The pension control panel can be used to identify potential applicants, it can also be used to pre-fill pension loan applications with real-time information.

3. In the long run, the private sector can help DWP automate the process of applying for a pension loan so that it is paid together with the state pension to those who are entitled to benefits.

That would be a double victory. The pension loan links significant resources within the DWP, using data that exists in public and private databases. The pension panel can free up human and IT resources under the DWP, as well as immensely improve the proportion of nearly a million poor retirees.

Sir Steve Webb, a former pension minister and LCP partner, says: “Everything that can be done to increase the use of pension loans should be good, especially given the pressure on the living standards of retirees.

“The pension panel could help identify people who may be eligible because it brings together all people’s pension rights in one place.

“But the government’s decision to exclude retirees from the dashboard makes it a lost opportunity.

According to the participants of the campaign, the pension loan is largely a “door to more”, with additional benefits, including free television licenses for people over 75 and discounts on electricity bills.

“Simple, bold messages about these additional benefits may be the most important thing that both the government and the private sector can do.”

Another former pension minister, Ross Altman, says of Taper’s campaign: “It’s a great initiative and really important.

“The payment of pension loans is the lowest of all payments, which is determined by logistics, remaining about 60 percent since 2010, and the government’s efforts to improve the use of loans have not helped.

“Official figures show that more than 90 percent of the incomes of the poorest retirees go to government support, so those who do not receive all the money they have money will have a hard time making ends meet, and now it is even worse. the middle of the cost of living crisis.

“There are many reasons why retirees are not eligible, including difficulty, aversion to filling out forms, pride, reluctance to divulge information, and many are simply unaware of this benefit.

“Some mistakenly believe that they are not entitled and do not realize that they can have up to £ 10,000 in savings and still be entitled to small amounts of pension credit, which can then open the door to other valuable benefits worth thousands of pounds per year. ‘

Lady Altman adds that the name “retirement loan” is not understood by many retirees who live alone, especially older women who are not online.

She encourages anyone who knows older people, relatives, friends or neighbors who could benefit from “retirement” to help them learn more (how to apply see box above).

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