The number of people approaching the state retirement age of 66 who are accessing food banks and other forms of financial support has increased (Picture: Getty)

‘I should be working less and thinking about retiring but I can’t afford to stop working.’

These are the words of Mandy*, a 60-year-old who has been struggling with increasing expenses due to the cost of living crisis.

Mandy, who lives in the south of England, has three part-time jobs and her income is supplemented by Universal Credit. She can’t take on any more work due to her health issues.

Despite living frugally and even being referred to her local food bank, she ended up in more than £500 of debt with her energy provider over the winter due to the cost of heating her home.

With the threat of debt collectors knocking on her doors, Mandy was only able to pay off the debt after one of her adult children, who recently got a promotion, gifted her the money.

Mandy said: ‘I’m getting older now, I should be winding down, but instead I’ve taken on two more jobs in the last year.

‘I was so embarrassed to admit how bad the situation was. A mum is supposed to look after her kids, not the other way around.’

The number of people approaching the state retirement age of 66 who are accessing food banks and other forms of financial support has increased steadily since the first coronavirus lockdown in 2020, and more sharply since the cost of living crisis took hold.

There’s been a big increase in people asking whether they can withdraw their pension early (Picture: Getty Images)

Of the 45-64-year-olds supported by Citizens Advice in the last quarter, more than half – 55% – had higher necessary expenses, such as rent and energy bills, than their income.

This is compared to 41% of the same age group in January to March 2020, and the highest figure since records began in April to June 2019.

There were 2,665 55-64-year-olds referred to food banks in February – the highest since 2019.

And 2,452 55-64-year-olds received charitable support in February, topping a previous peak of 2,339 people in March 2022.

For many, their income just doesn’t cover their necessary expenses like rent and bills (Picture: Getty Images/iStockPhoto)

With retirement on the horizon, there’s been a major increase in older adults wondering whether they should withdraw their pension early.

Research from Lottie, a retirement living comparison website and advice service, has found online searches for ‘can I withdraw my workplace pension early?’ increased by 2,850% in the last 12 months.

Will Donnelly, Lottie co-founder, says withdrawing small amounts from your pension pot could help you to stay afloat – but says you should seek financial advice before making any decisions.

‘I was so embarrassed to admit how bad the situation was. A mum is supposed to look after her kids, not the other way around.’ (Picture: Getty Images)

He explained: ‘It’s concerning to see older adults and those more vulnerable in society are being impacted by the cost of living crisis – especially those approaching the end of their working lives and struggling to financially plan for retirement and future years.

‘Recently we’ve seen a surge in employees researching their options when it comes to early pension withdrawal. Following recent pension reforms adults aged 55 and over are able to withdraw money from their private or workplace savings – and up to 25% can be withdrawn tax-free.

‘Whilst accessing a lump sum of tax-free money in a cost of living crisis may seem like an ideal solution to combating the rising cost of living, it’s important to consider all of your options.

‘Regular withdrawals of large amounts may see you move up to a higher tax bracket, especially if you’re still working and earning an income, meaning you may be left worse off than before.

‘However, topping up your salary with small amounts from your pension savings each month may be a lifeline for some older adults struggling to keep up with the rising cost of living.’

Some people are ‘unretiring’ and returning to work to help top up their pensions (Picture: Getty Images)

The number of people choosing to work longer, or ‘unretire’ and return to the workplace, has increased in recent months.

65-year-old Julia* returned to work after retiring from the NHS.

She said: ‘I decided to retire due to poor management and wanting to work fewer hours. I saw my ideal job being advertised, it was more hours than I wanted but there wasn’t a choice – I needed to supplement my pension.’

Many are hesitant to apply for benefits (Picture: Getty Images)

Many people approaching retirement age may be unaware that they could be entitled to some benefits.

Mandy’s benefits are paid straight to her landlord in rent, and she is applying for Personal Independence Payments with support from the Job Centre.

She said: ‘I didn’t want to be a scrounger, but I’ve worked and paid tax my whole life, and I need the support.’

Citizens Against Poverty (CAP), a charity which supports people in debt, says it is currently helping thousands of people who are struggling due to the cost of living crisis.

Figures from their latest research found 11% of over-55s have gone without heating every day during the cost of living crisis, 3% have skipped meals every day, and 64% expect the cost of bills and essentials will put as significant burden on their finances this year.

Anne* is a pensioner who became debt free thanks to support from CAP but says she’s at risk of falling into debt once more due to increasing costs.

She explained: ‘I worked until I was 75, but I am now facing a life with a pension that is too small to live off.

‘£10 for a week. That is all I have left after I pay my bills.

‘I have to get food, so I head to Iceland and buy tinned tomatoes, some bread to have in the freezer, some plain pasta, food for my dog, and perhaps if I’m lucky some chicken on a deal, but then the £10 is gone.

Photographer: Tetra Images Provider: Getty Images/Tetra images RF Source: Tetra images RF(Picture: Getty Images/Tetra images RF)

‘It’s not living. It’s not an existence. I am having to cut down on everything and it is taking its toll on my mental and physical health.

‘The current reality is putting old people in an early grave.’

Gareth McNab, director of external affairs at the charity, said: ‘My advice for anyone approaching retirement age or already retired who is struggling to afford their bills and essentials is to make sure you’re receiving all the income you’re entitled to – we’ve got a great free benefits entitlement calculator on our website.

‘If you’ve had a drop in income or expect to have one as you retire then there’s lots of free budgeting courses available that can help you adjust to your new circumstances.

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‘CAP runs free budgeting groups at local churches aimed at helping people avoid falling into debt and you can find more information on our website.

‘Finally, if you’re now in serious debt due to rising costs and it’s continuing to mount up then please seek free debt advice from a charity like CAP so you can face the problem and work with our experts to find a solution.’

*Names and identifying details have been changed.

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‘I was so embarrassed to admit how bad the situation was.’