Aspects of financial hardship affecting older Londoners

Our Campaigns Manager, John, looks at some of the different aspects of financial harship that affect older Londoners. 

There are many ways that older Londoners are different from their peers in other parts of the country. They are more diverse; work for longer; are less likely to own a car. They are also less likely to have a private pension; and are more likely to live on their own. They are more likely to rent (social and private sector); and (this often surprises people) are less likely to feel lonely.

This summary of course does not give justice to the complexity and nuance behind the research, and London remains a place where we see a vast spectrum of lives lived. They are also just a small selection of indicators. 

Poverty

Another difference is, sadly, levels of poverty. 22% of London pensioners live in poverty compared with 16% in the rest of England. There was a 4% increase in the number of London pensioners experiencing poverty in the decade leading up to 2024. I wanted to write about poverty amongst older Londoners because it Is not something policy makers and society, talk nearly enough about. 

More than a third of pensioners in London (37%) live below the Minimum Income Standard (MIS), meaning roughly 380,000 older people in the capital do not have the income required to cover a decent standard of living. 1 in 5 pensioners in inner London are unable access necessities such as a damp-free home, access to a telephone or having hair cut regularly. 

The cost-of-living is the main factor behing financial hardship in London (particularly housing costs)

The biggest factor is the high cost-of-living especially housing costs. The cost of rent in both the private and social sectors is a significant factor. Nearly half of older social tenants in London live in poverty and single pensioners are nearly twice as likely to live in poverty compared with couple pensioners. 

Other factors

Other factors that play a role in the significant poverty levels we see among older Londoners include the fact that London pensioners are less likely to have a private pension. Approximately 64% of older Londoners receive a private pension, compared to 78% in the rest of the country. 

As a diverse city (43 per cent of Londoners aged 50 and over are from Black, Asian, or other Minority Ethnic backgrounds), London also has a higher proportion of older people that come from backgrounds that historically are more likely to experience financial hardship due to a range of factors including structural discrimination and other inequalities. Analysis by Independent Age in 2023 found that 29% of older Asian/Asian British and 25% of older Black/Black British/Black Welsh: African people were living in poverty – both figures are much larger than the overall national pensioner poverty rate of 18%. 

Daily experiences

Statistics are one thing, but how does this translate into everyday lives. Some of the findings from Age UK London’s On the Edge report, published in 2025, include: 

• Financial insecurity - leaving some older Londoners in a constant state of anxiety about the future. 
• Some older Londoners are unable to afford repairs and maintenance, leading to vital home repairs being postponed indefinitely.
• The cost of living is leading many older Londoners to continue to work long after pension age or to return to work after a ‘first retirement’. 
• Nearly half of respondents reported finding it difficult to ‘shop around’ for more affordable prices and better deals when it comes to food shopping. 

The On the Edge campaign

As part of our On the Edge Campaign, Age UK London has successfully campaigned for the Freedom Pass to be protected; released three research reports; campaigned on Winter Fuel Payments and we are launching a new project with the Greater London Forum for Older People. As part of the project, we are working with members of pensioners’ forums in five boroughs, supporting them to call on their local council to improve support for residents. In July we held a workshop with Brent Pensioners’ Forum, and it was great to see lots of people interested in campaigning in a borough that has some of the worst pensioner poverty in the country. 

Poverty is a complex issue but there are solutions. Through our On the Edge campaign Age UK London is campaigning to drive awareness of pensioner poverty amongst decision-makers, and to call for change. Read our latest report about the lived experiences of older Londoners. 

John McGeachy is Campaigns Manager at Age UK London