One in four pensioners are struggling financially

New research by Age UK has found that 3.4 million (28%) pensioners, more than one in four, are struggling financially, and nearly half of them have been struggling for three years or more.

Notably, a fifth (22%) of those struggling, equivalent to 740,000 aged 66+ said they have been struggling financially for more than five years showing an even more persistent financial strain for a large number of pensioners.

In 2022-24, pensioners with the lowest fifth of incomes spent half of their total spending (more than £6,500) on the essentials of energy, food and housing. This is higher than those pensioners on the middle fifth of incomes who spent around 40% on these, and those on the highest incomes who spent around 30%.

Age UK warns that energy remains the dominant source of financial pressure for older households in 2026. Energy affordability continues to shape the financial confidence and wellbeing of pensioners, with one in four (25%) saying they find their energy bills unaffordable – even before the conflict in the Middle East began.

In a representative polling of people aged 66+ conducted in late January 2026, a worrying clear majority of pensioners (69%) – equivalent to 8.3 million – say they would rather turn off their heating than get into energy debt – a stark indicator of the trade-offs many are willing to make at the cost of their health and wellbeing. In practice, more than half of pensioners are cutting back in some form, and cutbacks extend beyond energy. For example, one in five pensioners said they have cut back on food and groceries to get by

The pressures among older people are not felt equally. Renters, women, younger pensioners, those with disabilities, and pensioners from ethnic minority backgrounds are all disproportionately affected.  Among older private renters, 51% pensioners said they were financially struggling, compared with 28% overall.  And for pensioners from ethnic minority backgrounds these challenges were likely to be even more common, as poverty rates are higher. 29% of Black pensioners and 21% of Asian pensioners are living in poverty, compared to 12% of white pensioners.

Energy bills remain more than £500 higher than they were at the end of 2021, and prices look set to rise again in the July price cap by around £202 more per year – bringing the average household fuel bill to £1,843.01 The risk of another spike in energy prices – and the inflationary consequences for other household spending – is a real concern for Age UK and the older people it represents.

Caroline Abrahams CBE, Charity Director at Age UK said “Our research was carried out before the war with Iran, so it’s frightening that so many older people said they were struggling financially even before the consequent price rises for energy and other essentials kick in. This makes the coming winter look really challenging for millions of pensioners, and it’s why the Government needs to do the planning now for the additional, targeted support that pensioners on low fixed incomes will undoubtedly need once temperatures dip later in the year.

“An important finding from this survey is that almost half of the 3.4 million older people who said they were struggling financially had been in this position for at least the last three years. Having money troubles is probably manageable in the short term, but if they go on and on it’s much harder – and more soul-destroying – to stay afloat. This shows that there’s more for us all to do, the Government above all, to make sure older people get the benefits they are due, so they don’t suffer the misery of being perpetually on the brink of running out of money.

“This research also shows beyond any doubt that vast numbers of older people, more than two in three overall, are so determined not to get into debt that they would rather be cold in their own homes, even if they jeopardise their health by turning off their heating when it’s chilly. It’s another very important reason to ensure that pensioners have the confidence to use their heating in the way their health requires, and this in turn places the responsibility on Government to work with energy suppliers and charities like Age UK on an effective energy support scheme, in good time for next winter.”