£2.7bn unnecessary pension debt

The independent financial advisor service claims that nearly half of the UK’s pensioners are unaware of their entitlements and tax rights.

In addition, future pensioners are also being urged to plan for the future to ensure that they retire in comfort rather than struggling to clear debt.

“No one likes paying more tax than is necessary, and no one likes missing out on something that is rightfully their own, so we are urging people to either kick-start their pension and tax planning or review their current situation with urgency,” said David Elms, chief executive of unbiased.co.uk.

Earlier this month, Sesame found that a quarter of pensioners admit that they are unlikely to clear debt before they die due to rising costs.

Poor planning for retirement or a lack of regular checks on entitlements means that many pensioners are missing their credits or paying Additional Voluntary Contributions.

Mr Elms urged both pensioners and those planning for retirement to take on debt advice to ensure that they get the most out of their later years.