The greatest financial fear for 23% of people aged 65 and over is that their savings will run out, and 8% worry most about paying for help and support if they need it, including care costs.
In addition, an estimated 3.5 million older people (31%) have run out of money before the end of the month. That’s according to a new survey by Independent Age, the older people’s charity.
The survey, which took place after the March 2016 Budget, found that an estimated 1.2 million (11%) people aged 65 and over don’t expect to have the money needed to pay for their funeral. Furthermore, an estimated 798,000 (7%) older people expect a relative or friend to pay for it.
Excluding mortgage debt, 25% of people aged 65 and over are in debt and the average debt is over £1800. An estimated 912,000 (8%) older people have debts of more than £5000.
On average, among those aged 65 and over, men have more debt than women with an average of £2287 worth of debt, while women had an average of £1250-worth of debt
Pensioners who are not claiming the benefits they’re entitled to are, on average, missing out on £41 a week or £2,100 a year. Spread across the year, this is the difference between being able to pay for a typical dual-fuel bill versus struggling to heat their home. In total, £3.7 billion goes unclaimed for all benefits for older people each year.
In terms of unclaimed financial support for people aged 65 and over, the survey results show that an estimated 4.4 million (39%) have never checked to see if they would be eligible for benefits such as Pension Credit or Council Tax Reduction. 48% didn’t know they could get a 25% discount on Council Tax if they live alone.
The survey also found that 21% of people aged 65 and over do not have any money saved for unexpected costs, such as repairing a broken boiler or paying for a dental emergency. 26% of older people would turn to family and friends if they needed financial advice and an estimated 684,000 (6%) wouldn’t know where to turn.
17% of those surveyed said they would be interested in a benefits check to find out what they are entitled to, but wouldn’t know how to do it. Independent Age runs free benefits checks for anyone aged 65 and over who wants to find out more about what they might be able to claim.
The survey supports the launch of Independent Age’s new Moneywise guide, which provides advice and tips to older people, their families and carers on how to boost income and save money. The guide covers topics such as how to reduce bills, housing costs, travel costs, how to boost your income and understanding benefits and taxes.
Lucy Harmer, director of services at Independent Age, said: “These results clearly show that many older people are worrying about their finances and don’t always know who to turn to for advice. Topping up your income becomes much more difficult the older you get, but bills still need to be paid. However, there is help available.
“Anyone who needs more information about how to save money and boost their income should order a copy of our free Moneywise guide or call our free advice line.”