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Rising bills, unpredictable energy costs and fixed incomes can make it harder to feel confident about money in later life - even if you’ve always managed well before.
Recent research suggests that a growing number of pensioners are finding the pressure a long-running issue rather than a passing phase. Whether you’re struggling now or simply want to make sure you’re not missing out on support, it’s worth understanding what help exists and where the gaps remain.
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The research from the charity Age UK, which is based on polling data, found that 3.4 million pensioners (66 and over) are struggling with money. And a fifth of those - around 740,000 - said they've had financial problems for five years or more.
The polling was carried out before the latest bout of global instability and energy market uncertainty, which has since pushed up household costs further. With energy bills likely to rise further in the summer, high and everyday expenses continuing to rise, many households are finding there is less room for manoeuvre, particularly those living on fixed incomes.
Caroline Abrahams CBE, charity director at Age UK, says the figures highlight the need to look ahead to the colder months. She warns that winter could be particularly challenging for pensioners with little financial flexibility, especially if energy prices rise again or unexpected costs crop up.
The research also shows that financial pressure is not felt evenly across the pensioner population. Certain groups are more likely to struggle, including renters, women, people with disabilities and those from ethnic minority backgrounds.
For example, more than half of older private renters surveyed said they were finding it difficult to manage financially, compared with just over a quarter of pensioners overall. Poverty rates were also higher among pensioners from ethnic minority backgrounds than among white pensioners.
Age UK is calling on ministers to consider additional targeted support for pensioners on low incomes, particularly as winter approaches. Its suggestions span three main areas:
Income: The charity wants to see higher take‑up of pension credit and other benefits, alongside close monitoring of hardship funds distributed by local councils to ensure they reach those most in need.
Energy: Proposals include changes to the Warm Home Discount so that more low‑income households qualify, as well as faster progress on schemes designed to improve the energy efficiency of older homes.
Housing: Age UK is also urging action to ensure housing support keeps pace with real rental costs, alongside longer‑term plans to increase the supply of affordable, age‑appropriate homes.
While the research focuses on the most financially stretched pensioners, it also underlines a wider issue: many people who could qualify for help never claim it.
Despite the pressures highlighted in the research, relatively few pensioners actively seek financial advice or support. Age UK found that only 6% had done so in the past year, with many saying they either didn’t think they would be eligible for help or didn’t know who to contact.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, says it’s worth checking your position — even if you assume you won’t qualify. “If you are struggling, it’s important to make sure that you are claiming everything you are entitled to.
“Pension Credit is an important, but hugely underclaimed, benefit that can really boost the incomes of the poorest pensioners while acting as a gateway to other help, such as a free TV licence for the over-75s.”
She adds: “The government’s moves to reintroduce the winter fuel payment for many pensioners will be a huge help when we move into the colder months. Longer term, the government is looking into the whole issue of pension adequacy as part of its Pension Review.”
Antony Smith, an independent financial adviser at Providus, adds; “Only 62% of eligible people claimed pension credit in 2023/24, which means help exists for a lot of people who may not know about it.
“It’s worth checking just so you can be sure you’re receiving all the help you’re entitled to.”
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