- More than 2 million people over 65 are known to be living in poverty, with at least a further 1 million also experiencing financial hardship
- New research from Independent Age highlights the measures older people are taking to survive the cost-of-living crisis
- The findings come as the charity renews its focus to become the only national charity dedicated to supporting people in later life in financial hardship
New research has found that the cost-of-living crisis is causing many people over 65 to turn to loans and credit cards to make ends meet, as they keep their financial worries from their family. In a survey of more than 1,000 people over 651, national charity Independent Age has found that 1 in 7 (14%) people over 65 are using loans to survive, as the cost of bills, food and fuel remain at their highest levels for a decade.
The charity, which supports older people facing financial hardship, is concerned that money pressures could lead to isolation, with 1 in 6 (16%) survey respondents saying they feel isolated due to their financial situation.
The research also uncovered a communication barrier:
- 57% of over 65s surveyed claim they wouldn’t feel comfortable asking friends or family for financial support
- 9% are hiding debt from their family
- Over 1 in 8 (13%) have spent money they don’t have rather than admitting to friends and family that they are struggling financially
The survey also revealed concerns about the future. With many pensioners on a fixed income, more than half (57%) agree to being concerned about their financial stability in the year ahead.
Wider public attitudes
The charity surveyed 2,000 people under the age of 65 to understand attitudes on finances in later life1. With the State Pension providing up to £203.85 a week, the research found more than half (51%) of people of all ages in the UK believe this payment is inadequate to cover basic needs.
The research also found long-term concerns over the financial sustainability of getting older. Over 2 in 5 (44%) of people aged 18 to 64 in the UK said financial security is their biggest concern about getting older, compared to over a quarter (27%) who said loneliness is their biggest concern about getting older, and over half (55%) of survey respondents who said failing health is their biggest concern about getting older.
A renewed focus on financial hardship
The findings come as Independent Age, a charity that has been supporting older people since the 1800s, has announced its renewed focus to become the only national charity dedicated to supporting people in financial hardship in later life.
Speaking ahead of a relaunch event on Thursday 22 June 2023 entitled ‘The hidden 2 million’, John Palmer, Director of Communications at Independent Age, said:
“These findings clearly show why our renewed focus on financial hardship in later life is desperately needed. Every day, we receive harrowing calls from frightened older people who are worried about their finances, but it is clear that many more are struggling alone and relying on credit cards and loans as costs continue to escalate.
“Poverty in later life was already a problem before the cost-of-living crisis, and it will continue to be a huge concern even when costs do reduce.
“We believe that no one should face financial hardship in later life. We urge all older people struggling financially to reach out to charities such as Independent Age, or friends and family where possible. Our free helpline can check if you are eligible for certain benefits such as Pension Credit or Attendance Allowance. These have the ability to transform lives for the better. You can contact us by calling 0800 319 6789.”
Case studies
Thabani, 73, from London, has been supported by Independent Age to increase her income through entitlements like Pension Credit. She explains how it feels to be in debt:
“I think society has actually forgotten about older people. You lose your value as you age. As a critical care nurse, I felt like I had status in society, I was respected; now, all of a sudden I’m retired, I’m in trouble with my creditors and depending on a food bank, when it used to be me donating instead. My self-esteem is so low. I feel like I didn’t manage my life properly.”
Kari, 88, Birmingham struggled this winter living in financial hardship:
“I never thought things would be like this when I was younger. I didn’t imagine I’d be worried about putting on the heating or turning on a lamp or being able to eat enough when I was older. How do I tell someone I didn’t have a meal this week, or that I haven’t had breakfast for the past few days? It’s very embarrassing saying that to someone. For the first few weeks, I felt embarrassed even going to the warm hub. You go in, you get warm, and then you get a meal. It took me a while to feel comfortable with that.”
- ENDS -
Notes to editor
1 The research was conducted by Opinion Matters, among samples of 2000 Nationally Representative Respondents under the age of 65 and 1002 Respondents aged 65+. The data was collected between 25.05.2023 - 31.05.2023 and 26.05.2023 - 31.05.2023. Opinion Matters abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.
Additional research findings include1:
- Pride (32%) is the biggest barrier to asking for financial support
- 1 in 9 (11%) have been reduced to tears by financial worries
More on Independent Age’s renewed focus
Supporting people facing financial hardship has been a priority for Independent Age since our foundation more than 160 years ago.
The number of people facing financial hardship is growing – more than two million older people live in poverty in the UK, and at least one million more live with precarious finances. Living in financial hardship affects older people's health, intensifies loneliness, and reduces quality of life – so we can and must work to prevent and alleviate it.
Our history and financial position mean we are uniquely placed to address this challenge and to become the only national charity dedicated to supporting people facing financial hardship in later life.
At Independent Age, we believe that no older person should face financial hardship. That’s why, by 2027, our goal is to have improved the lives of one million older people.
We’ll work across four areas, to help older people benefit from more income, lower costs, increased community connection and an adequate home.
And we’ll work to create lasting and sustainable change across the UK.
Our four areas of focus:
- Income: We will make sure older people facing financial hardship have sufficient income and receive the financial support they’re entitled to.
- Costs: We will ensure that older people facing financial hardship are protected from unfair or avoidable costs.
- Community: By working in partnership with other organisations, we will ensure older people facing financial hardship have the connections and support they need in their communities.
- Home: We will ensure that older people facing financial hardship live in safe, secure, and suitable housing with the care and support they need.