Money expert urges over-60s to 'act now' to avoid 'leaving money on the table'

Millions of retirees could be missing out on thousands of pounds by making simple pension mistakes, new research claims. Five key errors are leaving pensioners out of pocket every year, including missing government top-ups, drawing pensions too early, and leaving savings in low-interest accounts. More than 800,000 pensioner households in the UK are still not claiming Pension Credit, despite being eligible, according to money experts at Funderer.

That's an average of £3,900 per year going unclaimed. If you're over State Pension age and your income is under £201 per week (single) or £307 (couple), you can fix this error by using the GOV.UK Pension Credit calculator or contact Age UK to check eligibility. It could also entitle you to help with energy bills, NHS costs, and housing support. The second mistake is that many people start claiming their State Pension at 66, unaware they could receive significantly more by waiting.

Delaying your State Pension increases payments by 5.8% for every full year deferred. Based on the State Pension of £230.25 per week, that's a boost of around £700 a year for life after just a one-year delay.

Mistake number three is drawing from a private pension while still paying in, which can trigger the Money Purchase Annual Allowance (MPAA) and cut your tax-free pension contribution limit from £60,000 to just £10,000 per year.

To remedy this, avoid flexible withdrawals (like UFPLS or income drawdown) until you're sure you won't want to keep paying into your pension.

The penultimate error is keeping cash in accounts earning under 1% interest, meaning it loses real value due to inflation.

Instead, move your money to an easy access savings account, some pay up to 4.98%, or into fixed-rate ISAs and bonds that offer up to 4.58%.

Lastly, it can be a costly mistake to not claim other benefits you're entitled to, such as NHS prescriptions and council tax reductions. Use trusted tools like EntitledTo or Age UK's benefits checker to find out what you could be claiming.

Funderer's lead analyst said: "Many over-60s are unknowingly leaving money on the table.

"These aren't complicated strategies - they're simple steps that can have a big impact on financial security in retirement. Acting now can make your money last longer and give you peace of mind."