More than one in five pensioners are not claiming pension credits - leading to £2.7 billion in credits not being claimed this year - according to research by a independent financial advice research company.

Unbiased.co.uk found that pension credits, a government scheme guaranteeing people over the age of 60 a minimum weekly income of £119.05, were not being claimed by over 2.4 million elderly people.

Chief executive of Unbiased.co.uk David Elms said that this vital source of income for senior citizens being wasted "through apathy or confusion" is a "crucial problem" for the UK which should be addressed.

This news follows the termination of pension terms assurance by Gordon Brown in his final budget as chancellor of the exchequer.

Unbiased.co.uk's independent financial advice search has been running for over 18 years and promotes the benefits of independent financial advice to consumers and businesses.