3.4 million pensioners, more than one in four, are struggling financially and nearly half of them have been struggling for three years or more

Two‑thirds of pensioners would rather turn off their heating than fall into debt

Energy remains the single biggest pressure on pensioners’ finances in 2026, with average prices still over £500 higher annually than at the end of 2021.

Age UK releases its new report: Fragile finances, difficult choices highlighting long term financial hardships of older households.

In a new report out today, Fragile finances, difficult choices, Age UK warns about the risks of another year of energy price hikes and inflationary consequences, especially for pensioners living on a low fixed income.

New polling[i] for Age UK shows that among the 3.4 million pensioners (28%) in Great Britain who said they were financially struggling, almost half (47%) 1.6 million said they’ve been struggling for three years or longer, pointing to more persistent financial hardship.

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 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[ii].

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[iii]. 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.

Keith and his wife are both disabled in their 80s – they told Age UK: “The cost of energy is our most expensive outlay. We’re unable to keep the heating on and no matter how much extra clothing we wear, we are always cold.  We try to stay in bed a bit longer each morning or visit family during the day. As we both have a bus pass, we sometimes ride on buses during the day to keep warm.”

Pat, 79 commented: “I only buy the cheapest tinned goods, frozen veg and meat only when it is on offer.  We no longer eat bought cakes or other luxuries.  I now warm the body not the room.  My bedroom is only heated when the temperature indoors drops below 18 degrees as I suffer with Bronchiectasis and cold air exacerbates my condition.”

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.”  

Age UK is calling on the Government to act across income, energy and housing to address the underlying drivers of insecurity in later life, including boosting Pension Credit take‑up, strengthening protections against high energy costs and tackling unaffordable and poor‑quality housing.  To protect older people from another tough winter, Age UK urges the Government to act now across three interconnected areas:

• Income: Age UK calls for a sustained strategy to tackle the persistently low take-up of Pension Credit and other benefits, stronger protections and careful monitoring of the new Crisis and Resilience Fund to ensure it reaches pensioners in genuine hardship.
• Energy: Age UK calls for reform of the Warm Home Discount to extend eligibility to all low-income households, deepen the support it provides, while also optimising and accelerating delivery of the Warm Homes Plan.
• Housing: Age UK urges the Government to ensure Local Housing Allowance keeps pace with real rental costs, provide more consistent access to proven funding models and support with housing costs, and develop a long-term strategy to increase the supply of affordable, accessible homes suitable for later life.

Support is available via local councils through the Crisis and Resilience Fund from April 2026[iv], however barriers to accessing support remain significant. Awareness of local authority crisis support is low, even among those most likely to need it.  Age UK research shows only 6% of pensioners sought financial help or advice in the past year, nearly half (48%) said they did not think they would be eligible for support and one in five (21%) said they would not know who to contact.

Age UK is urging any older person living on a low income or struggling with their bills to contact Age UK’s free Advice line on 0800 169 65 65 to check they’re receiving all the financial support available. Alternatively, people can visit www.ageuk.org.uk/money or contact their local Age UK for information and advice.

Age UK hosts a free and anonymous Benefits Calculator which can provide an estimate of the benefits that people could be entitled to.