Pensioners are often described as a group that has benefited from generous pensions, rising property values and stable incomes. But this view overlooks the reality for many older people. There is significant variation in income and security among pensioners, and a growing number face financial hardship.
- There are now 2.1 million pensioners living in poverty. This is nearly one in five. Some groups are at particularly high risk:
- Around one in three older renters are in poverty
- 27% of single women pensioners are in poverty, compared to 13% of those in couples
- Between 30% and 33% of Asian and Black pensioners are in poverty, compared to 16% of White pensioners
- Disabled pensioners and carers often face higher living costs and lower incomes
Poverty in later life can mean being unable to afford to heat your home, cutting back on food, avoiding social activities, or being unable to cover urgent household repairs or medical costs.
One woman told Age UK: “Being a pensioner, you look at your money and wonder if you can afford food, heating and bills – and maybe one treat. Even some chocolates feel like a luxury.”
While some pensioners do have property wealth or additional income, this is not the case for everyone. Wealth is unevenly distributed and often not accessible to those who need help most. Many older people, especially renters and those without private pensions, rely mainly on the state pension. Retirement can last 30 to 40 years, so this can in no way be looked at as a homogenous group.
Analysis by the Pensions Policy Institute shows that certain groups have consistently lower private pension incomes. These include women, single mothers, carers, disabled people, ethnic minorities, and the self-employed. On average, they receive between 43% and 80% of the private pension income received by the wider population. Including the state pension and benefits reduces the gap, but does not remove it.
These figures matter in current policy debates. The triple lock and the level of the state pension are repeatedly discussed and reviewed. But it is important to ask who will be affected by any changes. People on low incomes, who depend most on the state pension, would be most at risk.
This is not about defending those who are well off. It is about recognising the financial challenges faced by millions of older people. The pensioner population is not a single group with a shared experience. Future policy should reflect the range of circumstances and ensure that those with the least support are not overlooked.
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