Brits say you can’t live a decent life on the state pension | Politics | News
Cash-strapped Britons are warning that the cost of living crisis is worsening, with a majority saying the full state pension is not enough for the country’s senior citizens to get by. Less than one in five (18%) think the new state pension of just under £12,000 is enough to cover their living expenses.
Findings from Pensions UK show why the “triple lock” of ensuring payments keep pace with inflation and average earnings growth should not be abandoned, a leading campaign group says. New research reveals the challenges facing households across the country. Forty-four percent of people said their financial situation was worse than 12 months ago; this rate was 34% in 2024.
Britons are cutting back on eating out (39%), takeaways (35%), holidays (32%) and even savings contributions (31%).
Alerting to the plight of pensioners, Independent Age’s Morgan Vine said: “Every day our advisers hear dire calls from older people living on low incomes who are making painful and drastic cuts just to make ends meet. These include not washing regularly to save water, eating just one meal a day and socially isolating themselves because they can’t afford to go out for a hot drink with loved ones.” He’s taking it.”
62 per cent of Britons say the £11,973 state pension is not enough to get by.
The findings come on the heels of leading think tanks attacking the triple lock. The Institute for Fiscal Studies has warned it could cost £40bn a year by 2050.
But almost nine in 10 Britons (89%) say pensions should always rise along with the cost of living.
Dennis Reed, of campaign group Silver Voices, said: “Those who claim the triple lock and state pension are too expensive and unsustainable need a dose of harsh reality. Let these furry MPs and well-paid think tank bosses try to live a week on the old state pension, which is £176 a week with food prices and electricity bills as it is now.”
He said the state pension should “become a genuine state pension of around £350 a week”; This is still only half the average earnings level.
There are strong fears that more pensioners will pay income tax if Chancellor Rachel Reeves keeps thresholds constant.
The Independent Age’s Mr Vine warned that by April 2027, elderly people with no income other than the new state pension “will have to pay some of it back in tax”.
He said: “This is unacceptable when so many people are finding it difficult to get by on the amount they currently receive.”
Caroline Abrahams of Age UK said: “Contrary to what some commentators think, a significant number of pensioners are struggling to make ends meet and are left with no money at the end of the week. “Many will have a small private pension, while others will rely solely on the state pension.
“One in eight older people receive all their income from their state pension and entitlements, and one in six pensioners still lives in poverty, so it is vital that older people have enough money to meet their needs to stay healthy and independent. It is vital that we have a good state pension, not only for current pensioners, but also for tomorrow’s retirees, many of whom struggle to save enough.”
Shadow Work and Pensions Secretary Helen Whately said: “Labour is making everyone worse off and pensioners are right under the radar of this Government… Labor lied to the country to get elected, now the economy is weaker, growth has halved and our country is living beyond its means.
“Keir Starmer has no backbone to stand up to his own party, leaving Britain trapped in a doomsday cycle of higher taxes, higher spending and higher debt.”
The research found that despite cost of living challenges, only 4% of people had reduced their pension contributions; 65% say people should be encouraged to make higher contributions.
Zoe Alexander of Pensions UK said: “Our research shows that people want the Government to focus on protecting the value of their pensions and helping them grow steadily over time.”
