Marvin Onumonu54% of people on a low pension struggled to keep up with bills and credit commitments, according to Living Wage Foundation’s ‘Life on a Low Pension’ report.
35% relied on at least one extra source of income, such as benefits, on top of their state pension, workplace pension and savings.
40% said they were struggling more now than before they retired, while 36% saw no change in their finances since leaving work.
42% of people on a low pension saw themselves as middle or higher earners during most of their working lives, while 35% said they were low earners.
40% of people living alone were in debt, compared with 25% of those living with a partner.
Since retiring, 48% had to cut back on entertainment and hobbies, 45% reduced spending on leisure travel and holidays, and 43% cut back on gifts and donations.
22% said their income was harming their mental health, 26% reported higher anxiety and 25% said their sleep quality had worsened.
Katherine Chapman, director of the Living Wage Foundation, said: “These findings show the tough reality for too many pensioners who, after a lifetime of work, are still left without enough to live on.
“No one should be worrying about putting the heating on when it’s cold or boiling the kettle for a cup of tea.
“The good news is, there’s a simple way that employers can play their part in tackling pensioner poverty.”
Chapman added: “Our Living Pension standard sets out the contribution level needed for a decent standard of living in retirement and it’s been brilliant to see more and more employers signing up so that their employees can look forward to a retirement with dignity and security.”
Samantha Brown, UK & EMEA managing partner, employment pensions & incentives at Living Pension Employer Herbert Smith Freehills Kramer, said: “As the UK population grows older are we about to see the ‘bank of Mum and Dad’ replaced by ‘Savings of Siblings’ with many pensioners reliant on their family for financial support?
“The reality is that a significant portion of the population is not on track to fund a secure retirement. Little wonder that trustees and pension funds are increasingly concerned about the long-term implications of this trend.
“Tackling the retirement savings gap will require a multi-pronged approach: expanding access to workplace savings schemes, improving financial literacy, and encouraging consistent long-term contributions.”
Brown added: “The key to this lies in exploring innovative strategies and advocating for policy reforms that help build more resilient retirement outcomes for future generations.”
