Nine in ten UK pensioners now rely on personal savings for day-to-day expenses, with nearly a quarter dipping in monthly. A new report suggests rising costs are forcing older generations into long-term financial vulnerability.
Rising inflation, global economic pressures, and stagnant incomes are pushing many older Britons into an increasingly precarious financial position. A new survey has revealed that the vast majority of over-65s are drawing on personal savings to cope with basic living costs.
According to data from idealo.co.uk, the trend is placing millions of retirees at risk of depleting their retirement funds, with knock-on effects that could extend to younger generations and the broader economy.
Widespread reliance on savings to meet daily living costs
More than 90 percent of people aged 65 and over in the UK are now depending on their personal savings to cover day-to-day essentials, according to a national price awareness survey by idealo.co.uk. The data highlights that nearly one in four older adults are withdrawing from their savings every month in order to remain financially afloat.
The findings show that this reliance is not just occasional but has become a routine aspect of household budgeting for many. In fact, 39 percent of those surveyed said they are struggling to afford basic bills such as energy and food, with 33 percent checking their bank accounts daily due to concerns about financial security.
“The long-term risks are deeply concerning,” said Katy Phillips, senior brand and communications manager at idealo.co.uk. “Regularly drawing from savings could mean less money to rely on in retirement.”
Additionally, 26 percent of respondents reported buying less food to manage expenses, while nearly half (49 percent) have already cut back on discretionary spending such as clothing. One in eight stated that they no longer have funds left for non-essential purchases after covering basic bills.
Global economic conditions intensify financial stress
The situation is being exacerbated by global economic shifts, notably the new tariff regime introduced by Donald Trump, which is contributing to higher import costs and inflationary pressure on UK households. According to the survey, 69 percent of respondents feel that “everything is getting more expensive.”
With essential costs rising, the financial flexibility of older generations is diminishing. This is not only impacting their quality of life but also their capacity to support family members. The survey found that 29 percent have already stopped spending on others, including children and grandchildren.
Phillips noted that while government support schemes such as winter fuel payments and council tax reductions can offer some relief, practical consumer strategies like using price comparison tools may also help pensioners maximise their remaining funds.
