A national survey, published today, reveals the true extent of financial hardship faced by pensioners and the lack of financial support older people receive. 

The survey, of 637 people, carried out by national charity IndependentAge in conjunction with leading consumer magazine Yours, reveals that two in three (66%) respondents aged 65 and over live on less than £150 per week, with 11% living on less than £100 per week.  Shockingly, some respondents said they spent as little as £1 per day on food. 

Despite coping with such financial adversity, the survey reveals that a staggering 55% of respondents are not in receipt of benefits.  The reasons for this are threefold: 21% were unaware that they may well be entitled to them; 13% were hampered by the confusing system; and one in five (21%) did not want to go through the means testing process.

Jonathan Powell, Chief Executive of IndependentAge said:  "The results of this survey prove that the current benefits system is failing the people who need it most, as does the £2.9billion in potential benefits that went unclaimed in the 2003/2004 financial year.  The system is inaccessible and confusing while older people see it as intrusive and demeaning.  An immediate increase in the basic state pension to a level that simply meets people's basic needs, a measure supported by 87% of respondents, would remove the stigma of additional means tested benefits.  IndependentAge believes that all older people should have an adequate income to cover essential items and which, in turn, enables them to retain their independence and remain connected with their communities."

Whilst running into debt was not such a concern for respondents who have lived through post war rationing, the fear that their financial independence may be under threat due to rising bills was acute.  Over three quarters (76%) of respondents aged 70 plus worry about escalating bills such as council tax and heating compared to only 45% who express fear about running into debt.
And the worry and financial burdens do not stop there.  Coping with one off costly expenses were also revealed to put an added pressure on respondents, three quarters (72%) of whom said that financial security was of utmost importance in maintaining their independence as they get older.  71% of respondents aged 65 plus cannot afford to put money aside for “the unexpected” and yet 69% of these people had to cope with the cost of an unexpected large payment in the last 12 months.

Jonathan Powell, Chief Executive of IndependentAge said: "As a charity that provides financial assistance to older people in need, we are only too aware of the huge stress caused when older people are confronted with an unexpected bill or an unavoidable emergency repair.  They are often not in a position to put aside contingency money and any capital is usually tied up in their homes."  

Valery McConnell, Editor, Yours said: "While for many there has never been a better  time to be retired, this survey shows that many older people are denying themselves basic necessities such as food, because of their  fear of mounting household bills. For whatever reason, help is not reaching many of those on low fixed incomes and redressing this should be a priority."