A recent study by Age UK found that a third of respondents are struggling afford basic necessities. This suggests that nationally, there could be up to 4.5 million over-60s who struggle on a daily basis just to survive on their incomes.

In their study, Living on a Low Income in Later Life, Age UK states that older people without a pension savings cushion are forced to “make do” with their small incomes, and are “fearful of the future.”

Going without

The millions of people who are forced to go without have been the subject of many reports lately, particularly because Britain may be entering a ‘savings crisis’ that will leave millions more impoverished in their later years. Projections, based on the average amount that UK workers are saving, suggest that the nation will fall millions of pounds short over the next few decades.

Because of this, experts are urging all workers to begin pension planning as soon as possible. The hazards of not planning for the future can be seen in the heartbreaking Age UK report, which says that the standard of living has decreased for the low-income elderly.

This is due to a combination of factors that have built a ‘perfect storm’ of havoc for pensioners. Savings and annuity rates are being kept low artificially because of the Bank of England’s emergency economic policies, while household costs like food and fuel have skyrocketed.

Age UK reports that these factors have forced many pensioners to do without an oven because they cannot afford to have it fixed, or without hot water because they cannot afford to run their home’s boiler.

Struggles

The struggles don’t end there, as respondents to Age UK’s survey cited other reasons why living on a low income in retirement is physically and emotionally draining. The survey found that 1 in 7 older people have gone to bed just to keep warm, while the same proportion of people said that they save on heating by living in just one room.

The charity has said that while 1.8 million pensioners are living in poverty, their survey suggests that many more who are above the official poverty line are still struggling. Nearly one in five, or 20% of people surveyed, said that they would have difficulty paying an unexpected £150 bill.

The Age UK poll illustrates the importance of planning for retirement now, rather than waiting. Recent pension reforms will see to it that most private sector workers will have a company pension and 8% of their salary automatically saved by 2018. The challenge now is keeping ourselves in the scheme, and continuing to build towards the future.

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