Older people’s experiences of poverty and material deprivation are the subject of a new report by researchers at Bristol University, published today by the Department for Work and Pensions (DWP).

The researchers conducted a number of interviews and focus groups with older people to explore why they report lower deprivation scores than families of working age, even though pensioners typically report lower incomes than the younger group. 

As well as examining material deprivation measures, the research had a wider range of objectives including to better understand pensioner’s experiences of poverty and why they spend and save, and to explore the impact that support from others has on older people’s perceptions of their needs.

The research found that while a sizeable minority felt better off in retirement, most did not.  For many, expectations of retirement were generally low and most realised they had to cut back and revise their lifestyle.

Most were 'careful money managers', adopting meticulous budgeting strategies because of the fixed nature and lower level of their income in retirement.  There was also a fear of debt and a strongly felt need to protect savings.

The overwhelming majority were currently saving with most doing so informally (that is, at home or in current accounts).  Savings were generally used for short term needs such as paying bills or buying presents.

Many praised Winter Fuel Payments as helping them manage fuel expenditure.

Financial/material support from the family was common and seemed to be a protective factor against possible deprivation.

Nicola Dominy of Bristol University’s Personal Finance Research Centre, who carried out the research, said: “Most pensioners have to cut back and revise their lifestyles, and for some the support received from their families clearly provided a financial cushion against deprivation.

“It is quite clear that many factors, including income and savings, determine how people answer material deprivation measures.  These factors include support from the family, health, lifetime income and changing expectations.”

The report, ‘Understanding older people’s experiences of poverty and material deprivation’ was written by Nicola Dominy and Elaine Kempson.

The report is available to download via the DWP website, or by visiting www.pfrc.bris.ac.uk