Experts are warning that pensioners are being forced to rely on their savings to survive the cost of living crisis.
State pension payments are set to be awarded an 8.5 percent payment rate increase next year as per the triple lock.
If this were to be implemented, the full new state pension rise from £203.85 per week to around £221.20.
Furthermore, the basic state pension would jump from £156.20 per week to around £169.50 if the triple lock promise is kept.
However, a new survey suggests that inflation-hiked rate increases to the state pension have not been beneficial to retirees who have been forced to use their savings to “keep their heads above water”.
Read more: ‘I have 48 years of National Insurance contributions but can’t have full state pension’
A recent survey conducted by Hargreaves Lansdown found that one in four people believe rising prices have forced them to eat into savings with one in 20 admitting it has forced them to empty their accounts.
Those who are higher-rate taxpayers are much more likely to have spent some at 38 percent and slightly more likely to have spent all of their savings at seven percent.
Around 15 percent of people have stopped paying into their savings accounts and one in 10 shared they needed to pay more in.
This is primarily due to the cost of the emergencies they needed to cover getting more expensive too.
Sarah Coles, the head of personal finance at Hargreaves Lansdown, went into detail about what this survey data reveals about the plight of pensioners.
She explained: “Retired people are keeping their heads above water, with just 20 percent spending some of their savings and one percent spending it all.
“This may be because they have fewer outgoings, or because the state pension rose 10.1 percent in April.
“Alternatively, they may be able to cut their costs more to stay within their budget.”
The finance expert noted that the ongoing cost of living crisis has significantly depleted peoples’ savings in recent years.
Ms Coles added: “Even those who have managed to hold onto their savings may have been forced to pay in less – with one in seven cutting savings – rising to one in five of those aged 18-34 and those with children living at home.
“Given that our emergency savings are meant to be able to cover 3-6 months’ worth of essential expenses, and the price of those essentials has skyrocketed, the fact we need more emergency savings yet can’t afford to pay as much in is worrying.
“Yet it’s worth highlighting that it’s vital not to lose hope: having some savings is always better than having none, and you can always pledge to revisit your savings when you next get a pay rise – before you have chance to get used to the extra money.”
