Pensioners in poverty are isolated and eating only one meal a day – they need help

Pensions matter. They may not be as attention grabbing as some other topics, but they can be the difference between a later life filled with joy and dignity, or one filled with anxiety and stress.

With this in mind, the UK government’s decision to revive the Pensions Commission is a welcome one. The last commission brought transformative change, paving the way for both auto-enrolment (which enabled workers to save more for their retirement) and the new state pension (which aimed to remove some of the inequalities that existed with the earlier pensions system).

This re-launched commission provides an opportunity to review the ever changing landscape to ensure future pensioners retire with an income that provides enough money for a dignified and financially secure later life. Ignoring the crisis approaching ever closer on the horizon is not an option. Action is essential.

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We know there are extremely high poverty levels for people in their 60s, and last year Independent Age commissioned research that showed if current trends and policies stay the same, poverty among older people could surge from two million people now, to four million by 2040.

Poverty is detrimental to our society as a whole and every day, it deprives people of their choices, forcing them to make difficult decisions that can negatively impact their health, relationships and dignity. The older people on a low income that our advisers speak to often make significant cutbacks to save money, restricting themselves to one small meal a day, washing less than they need to and isolating themselves because they cannot afford to meet loved ones in a cafe.

This way of living is already becoming the norm for too many older people across the country, allowing this to continue would be a dereliction of duty, and we’re pleased the government is tackling this problem head on by re-establishing the Pensions Commission.

We welcome the commission’s intention to shine a spotlight on women and on people from racial minority groups. This focus is much needed. We know women are more likely to face breaks in their employment history due to providing care to children or family members.

Our research is also clear that people from racial minority groups can face employment and housing discrimination which can cause financial hardship during working age. Factors like these – alongside housing tenure, health conditions and whether you are a one-person household or not – increase people’s likelihood of experiencing poverty in later life.

The commission is a positive step forward and could go a long way in preventing a future surge in pensioner poverty. However, what we also need to see is a focus on people currently living on a low income in later life. With almost two million older people living in poverty right now, and another million precariously hovering on the edge, we must not forget this group, they need bold and innovative solutions today.

As well as exploring how to increase people’s income and ensure they are receiving the money they are entitled to through the social security system, the government should tackle high costs that have stretched budgets to breaking point. Interventions that older people in financial hardship tell us would make a difference to them include introducing national social tariffs for both energy and water – and this week we were pleased to see that the Independent Water Commission recommended doing this to tackle water bills.

Supporting older renters is also going to be essential as they are much more likely to live in poverty compared to homeowners and their number is growing rapidly; rising from 280,000 in 2001 to 330,000 in 2021. The Renters’ Rights Bill currently in Westminster parliament will offer some protection, particularly from unfair eviction and excessive upfront rent payments. Renters of all ages need this legislation to quickly become the law of the land.

So, while the Pensions Commission is welcome, we also need concrete plans which have current older people in financial hardship at their heart, to ensure we eradicate poverty in later life now and in the future.

Morgan Vine is Independent Age’s director of policy and influencing.

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