Age Scotland: Almost half of older Scots 'feel financially strained'

The paper, published on Thursday, also found that 35% believe they will be financially strained in the next year.

New research from Age Scotland has revealed a substantial increase in the number of older people facing financial hardship.

This is an increase of more than 60% in two years since Age Scotland’s first Big Survey in 2021, where 26% of adults over 50 said they were struggling financially.

The survey examines more than 4,100 people aged over 50, spanning every local authority area in Scotland.

READ MORE: Age Scotland survey finds two thirds don't feel valued

Some 97% of respondents who said they are struggling financially cited energy bills as the biggest factor.

And 76% said they were struggling to afford food bills, while 62% said council tax was a key issue – an increase from 46% in 2021.

Eight in 10 over 50s claimed they had cut back on energy and heating, with just over half (55%) stating they had cut back on holidays.

Just under half (49%) told the survey they have made cuts in relation to food, 46% had stopped spending as much on socialising, and 41% said they had reduced the amount of money they put into savings.

Age Scotland said a main concern for the future is the 26% of those aged 50-54 and 27% aged 55-59 who said they are cutting back on retirement savings.

Some 15% of people who responded with less than £10,000 annual gross household income had either been using credit cards or taking on voluntary debts to manage.

Only 16% responded saying they were optimistic about the future.

Katherine Crawford, CEO of Age Scotland, said: “Our Big Survey findings drive home the devastating toll the cost-of-living crisis is taking on older people’s financial wellbeing.

“Far too many pensioners are affected by poverty, and the stark reality for 2023 is older people in Scotland are getting colder, poorer and less optimistic about their future.

“In fact, many are cutting back on all life’s necessities and pleasures – from heating and food to holidays and social activities – and still struggling to make ends meet.

READ MORE: Highland woman facing travel 200-mile trip for Covid jag

“Our helpline is hearing from an increasing number of older people who are finding it near impossible to pay their bills, having cut down on all but the essentials, and are at risk of falling into unmanageable debt as a result.

“Looking at the huge number of working age older people cutting back on saving for retirement also paints a grim image of the future, so it’s vital to ensure we have a labour market that is prepared for and able to properly support older people to work flexibly for as long as they want and need to.”

She added: “As we head into the colder months, it’s vital older people are claiming every penny they are entitled to. A quick call to our free 0800 12 44 222 can help you make sure you’re not missing out.

“Given the strain facing older households due to cost of living, if there was ever a time for big ideas and action from the Scottish and UK governments on how to tackle poverty and get more money in older people’s pockets – it is now.”

Justice Secretary Shirley-Anne Somerville said: “Ensuring financial security in older age is a key priority for Scottish Government and we’re taking a wide range of actions.

“This year we have tripled the Fuel Insecurity Fund to £30 million which provides support to any household using any fuel who are at risk of self-disconnection or self-rationing their energy use.

“Other actions include support with the cost of travel, with free bus travel universally available to everyone over the age of 60 in Scotland, help with energy efficiency through Warmer Homes Scotland and replacing DWP’s Cold Weather Payment with our new Winter Heating Payment.

“This provides a reliable annual £55 payment helping around 400,000 low-income individuals, including those in receipt of Pension Credit, with their heating expenses each winter.”

She said the Scottish Government has provided more than £12.3 million in 2023 to supporting free welfare, debt and “income maximisation services”, including providing £4.45 million to Citizens Advice Scotland.

She added: “We have invested £971,000 in Social Isolation and Loneliness funding to help tackle the social impact of rising cost of living.”

A spokesperson for the Treasury said halving inflation and reaching the 2% target is its “priority”.

They added: “This year we provided the biggest ever cash increase to the state pension, a 10.1% rise and we are supporting people through these difficult times with one of the largest cost-of-living packages in Europe, worth £3,300 on average per household over this year and last, boosting pay with the largest ever cash increase to the national minimum wage and helping those struggling with mortgage costs through our new Mortgage Charter.”