- Just one in five (21%) older people say the State Pension is enough to cover basic living expenses.
- ‘Older people living on a low income, with caring responsibilities, or with a health condition are more likely to have cut back on heating and food.’
- Independent Age call on Scottish Government to create a Pensioner Poverty strategy.
A charity’s new annual index on the economic wellbeing of older people in Scotland has revealed the difficult reality of being on a low income in 2025.
‘Older People’s Economic Wellbeing Index: Scotland 2024-25’, commissioned by Independent Age and conducted by the Diffley Partnership is a nationally representative poll of people aged 66 and over. This year marks the first year of the Index. The research will be repeated annually to track trends over time.
The Index shows that nearly one in five (19%) older people in Scotland have a household income of less than £15,000 a year, and paints a stark picture of difficulties in later life in income, costs, housing, quality of life and political representation. The research shows that certain groups are being particularly affected by the cost of living on a low income, including carers, people in one-person households and people living with a disability.
The number of older people in poverty is rising, with 156,000 or one in seven currently affected, a number that has risen by 25% in the last decade. Independent Age are calling for the Scottish Government to create a dedicated strategy to tackle this and for the UK Government to make sure that all social security payments provide enough to live on.
Income and financial wellbeing
The Index shows that older people across Scotland on a low income generally do not feel positive about their financial situation and that Government support for older people does not feel sufficient.
- Just over one in five (22%) older people with an income of less than £15,000 rate their financial situation as good.
- Three in five (61%) older people say the amount they receive from the State Pension isn’t enough to cover basic living expenses.
- One in four (24%) older people with a health condition are not aware of Attendance Allowance/Pension Age Disability Payments.
- One in four (24%) older women reported having an income of less than £15,000 compared to one in eight (13%) men.
Costs and cutbacks
Rising costs are hitting older people across Scotland, especially those living on a low income. Women, disabled people, carers and one-person households were found to be at particular risk of being financially forced to cut back on heating, skip meals and reduce social interaction.
- Almost one in three (29%) older people in Scotland have skipped meals in the last 12 months
- Less than half (47%) of older people in Scotland on an income of less than £15,000 are confident they will be able to pay their heating bills over next 12 months
- Half (50%) of older people report that they have cut back on heating or utilities at least occasionally because of financial difficulties.
- Over four in five (83%) older people with an income of less than £15,000 have cut back on heating or utilities.
- Almost a third (32%) of older people with a health condition have skipped meals because of costs, compared to a fifth (21%) without a health condition.
- Almost one in four (23%) women frequently or always cut back on heating or utilities, compared to one in six (17%) men.
Housing
The number of older private renters is rising across Scotland, yet this group often feel ignored by society. The Index shows that for too large a number, their housing situation is less than ideal.
- People in the most deprived neighbourhoods (SIMD 1) are least likely to own their home outright and the most likely to rent from a social landlord compared to those in all other neighbourhoods (SIMD 2-5).
- Older people renting from a private landlord were the least likely to say their home is ‘entirely suitable’ (40%) compared to those who own with a mortgage or loan (61%) or those who out-right owned (63%).
- One in four (24%) older people report a challenge with the affordability of their housing, with it becoming unaffordable for them to live there.
Quality of life and political representation
Although most older Scottish residents polled said they are satisfied with their quality of life, most felt they were not well represented by political offices.
- 63% of people of pensionable age say they are not represented by the Scottish Government. This increases to 77% when it comes to the UK Government.
- 85% of older people supported the Scottish Government creating a pensioner poverty strategy and 81% supported the creation of an Older People’s Commissioner.
- Across the board, older individuals with one or more health conditions are less likely to be satisfied with each aspect of life than those without any health conditions, including their quality of life as a whole (67%; 90%), their level of social interaction with others (66%; 83%), their general health (50%; 90%) and their ability to access public transport (54%; 73%).
Debbie Horne, Scotland Policy and Public Affairs Manager said: “In a fair and just society, no one should be living their later years cutting back on food or not using the heating. They shouldn’t be living in a home that doesn’t meet their needs. Our new Index paints a stark picture of the reality of living on a low income in Scotland in 2025.
“We’re calling on the Scottish Government to develop a Pensioner Poverty strategy to address the misery felt by a rising number of older Scots on a low income. This should set out actions to boost incomes and social security take up and improve housing affordability and energy efficiency.
“They should also work to create an Older People’s Commissioner who could make sure that the voices of older people across Scotland are heard in policy making. Also, the UK Government must make sure that the social security payments that they control are adequate to live on.
“An Index to measure the economic wellbeing of older people across Scotland is overdue. We know that many in this group feel ignored by wider society, and that the poverty facing many of them isn’t given the attention it needs. We hope that the Index will change that.”
Mark Diffley, Founder and Director of the Diffley Partnership said: “This important new survey provides valuable insight into the challenges older Scots face and highlights areas where support is needed, particularly for those on low incomes.
“Many are struggling financially and feel poorly supported and represented by government bodies and political representatives. Cost cutting behaviours are pervasive amongst older people and are especially prevalent amongst those who are further marginalised, such as those living in deprived neighbourhoods and people with health conditions.
“As the population ages, it’s vital to develop policies which ensure financial security and confidence to support continued independence and dignity in later years. We look forward to continuing to work with Independent Age to measure how these attitudes change over time.”
