4.5 million older people teeter on poverty line

24th January 2012 - A survey of poverty among the elderly reveals that 4.5 million people over 60 in the UK can only just afford the basics.

Findings from the poll have been released to coincide with a new report by the charity Age UK, 'Living on a Low Income in Later Life'.

The research reveals the impact that the economic downturn is having on older households, with over half (55%) of people finding it harder to manage their regular outgoings compared to this time last year.

Michelle Mitchell, charity director of Age UK said in a statement: "Living on a low income is hard work. Currently there are 1.8 million people in later life living in poverty, but our polling suggests that many above the official poverty line are finding life hard."

Cutting back, making do

ICM interviewed 1,003 adults earlier this month and found a universal picture of over 60s cutting back, doing without and making do. As prices rise and low interest rates limit savings income, pensioners worry about energy bills and how they are going to buy enough food to eat.

The fragile state of many older people's budgets is underlined by nearly one in five (18%) of those surveyed saying they would struggle to pay an unexpected bill of £150.

Among other findings, ICM found that:

• Nearly one in ten (9%) of people aged 60 and over admit to either “finding it  quite difficult” or “really struggling” to manage on their income
• Almost one in seven older people (14%) admit they have gone to bed when they weren’t tired to keep warm
• 13% say they live in just one room to save on heating
• Around 3.1 million people (23%) aged 60 and over have bought less food than they wanted and over half of those interviewed (55%) have moved to cheaper brands in the last year

Debt worries

Older people told researchers they were finding life tough living on a low income, although by and large they believed they were getting by. How well they coped depended on whether they had experienced tough times before or not, with those used to a more affluent lifestyle in the past less likely to cope with a lower income now they are older.

The study also found that older people worried about getting into debt and avoided it by keeping a close eye on their spending.

Elsie, 78, lives on her state pension topped up by pension credit, but because she has to contribute towards the rent on her warden-controlled flat she has to live on about £120 a week. In order to keep within budget, she told researchers that she shops around for the cheapest food and is careful to keep her heating bills to a minimum.

Although most older people were debt-averse, some had found themselves with the additional problem of owing money. Tony was left struggling to pay off credit card debts which he had incurred after his divorce left him no option but to borrow to pay solicitors' fees.