One in five pensioners are in poverty, with more than a third of those considered to be in ‘very deep’ financial hardship, a report finds.
Over a third (39%) of pensioners are eating less than they should and three in five (61%) are showering or taking a bath less, according to the State of Ageing report from the Centre of Ageing Better.
The measures taken by pensioners to survive the cost-of-living crisis also included avoiding trips to the dentist (47%) and cutting down usage of their cooker or oven (73%).
It comes as a single pensioner is £50 short of the income needed to achieve the minimum socially accepted standard of living. This amount nearly doubles to £80 for pensioners in a relationship.
Further, with one in 10 pensioners having no private or workplace pension, millions who rely on the state pension for income are finding themselves under financial strain.
Over two million in pension poverty
There are 2.1 million pensioners in relative poverty, and the rate is growing at nearly double the pace for pensioners out of a couple compared to those in one. A quarter of single pensioners are in poverty, compared to 14% of those in a relationship.
The concerning picture has led to the Resolution Foundation taking aim at the Government’s Budgets for alienating retirees who rely on their state pensions.
Chancellor Jeremy Hunt announced a freeze on tax thresholds, and it claimed that, when the rise in state pension is taken into account, this will leave pensioners needing to pay an extra £1,000 in the 2027/28 tax year.
While the headline-grabbing National Insurance cuts announced in Hunt’s Budget missed any benefit on pensioners, the Government offered a backdated £299 cost-of-living boost for those who receive Pension Credit.
Pension Credit deadline has passed
Pensioners had until 5 March to apply for Pension Credit, a support package worth an average of £3,900 per year.
Despite this, Dr Carole Easton, chief executive at the Centre for Ageing Better, believes the Government is not helping the poorest pensioners but exacerbating their issues.
The Centre for Ageing Better has called for an increase in the uptake of the Pension Credit scheme, as well as the introduction of an independent commissioner for older people to ensure policymakers are considering the needs of retirees.
It’s also urged the Government to pause proposals to raise the state pension age, which is set to rise to 68 in 2026.
Retirees in ‘very dire’ financial position biggest losers
Easton said: “It is extremely concerning that pensioners are the biggest losers financially of last week’s Budget when you consider the very dire financial position many retirees are in already, as detailed in our new report. We desperately needed a Budget that offered a helping hand to the very poorest pensioners, not pushing them deeper into financial trouble.
“The Government have said they want this country to be the best place to grow old in. But we currently have the worst state pension offering among OECD countries, while one million of the poorest pensioners have no private or workplace pension. Clearly, we have an awfully long way still to go.”
Easton added: “The cost-of-living crisis has clearly been a very difficult time for many of our nation’s pensioners, who are being forced to cut back on even the basic essentials of life. But it is also impacting the ability of workers to save and to contribute to a pension, creating the substantial risk of even greater pensioner poverty in the near future.
“The highest poverty rate among adults in this country is now among adults aged 60 and over who are heading towards retirement, which indicates the worst may yet be to come.”
