The new research, produced by national charity Independent Age and City, University of London, analysed data from Understanding Society. The study tracked the financial status of people at State Pension age and above between 2010 and 2019. It reveals that many people in later life live precariously, just one step away from falling into poverty.
The new analysis found a significant number of people fall into poverty after they retire. The situation is particularly troubling for certain groups who are more likely to slide into financial hardship in later life.
Key findings
- 11% of Asian pensioners entered poverty, as did 7% of Black older people.
- Older people who live alone are also more at risk, with 6% of single women and 5% of single men going into poverty between 2017 and 2019.
Morgan Vine, Head of Policy and Influencing, Independent Age, said: “This new research paints a concerning picture of later life in the UK over the last decade. It is unacceptable that two in five people in later life have been forced to spend at least one year in poverty across a nine-year period.
“An older person who has spent a year or more in poverty is much more likely to be unable to afford an unexpected expense such as repairing a broken boiler, they will try to save money by cutting back on heating and food, and they will likely limit their social interactions to save money1.
“For those in later life who manage to get out of poverty, many are still living on the edge, feeling insecure and meaning they are less likely to be able to afford things that everyone else takes for granted.”
Longer-term poverty
As many as one in twenty (6%) pensioners spent more than seven years in poverty between 2010 and 2019. A further one in ten (10%) spent four to six years in poverty. Groups especially affected were people who live alone – with 11% of single women and 9% of single men spending seven or more years in poverty – and Black people. 17% of Black pensioners experienced poverty for seven years or more during the period analysed.
Morgan Vine, Head of Policy and Influencing, Independent Age, continues: “After another incredibly tough year, 2022 should be an opportunity for hope, but for many older people living in poverty, the new year brings anxiety and despair as they struggle to pay their bills and stay warm, fed and healthy.”
Income and expenditureMoney and finances
