A reader recently reached out regarding his 94-year-old aunt, who is nearly blind and facing financial strain due to her homecare policy. The cost for repairing her boiler, plumbing, and electronics has surged unexpectedly, with her renewal quote hitting £591—a steep increase of 18 percent from the previous year, far exceeding any reasonable inflationary adjustment.

The reader shared, “I discovered online that new customers receive the same coverage for £391—something my aunt couldn’t find out herself since she lacks internet access. Holding her power of attorney, I contacted the provider to negotiate, but they refused to offer the internet rate.”

This incident highlights a troubling trend: the older you get, the worse the deals you receive. Many elderly individuals face a so-called loyalty penalty for staying with the same provider, be it for banking, insurance, or internet services. Most competitive rates are reserved for new customers. While loyalty penalties are prohibited in home and car insurance markets, other sectors continue this practice, disproportionately affecting the elderly.

New technology further exacerbates this issue. Discounts and top deals frequently require online access, putting older individuals who may not use the internet at a disadvantage. For example, parking has become challenging without a smartphone app. One reader, suffering from multiple sclerosis, was fined £170 after it took 15 minutes to leave a car park when he found out he could only pay via smartphone, which he didn’t have.

Countless offers, including the best savings accounts, are available solely online or to new customers, leaving older people without tech skills or access in the lurch.

Age-related price increases are another concern. Travel insurance for retirees can skyrocket, sometimes costing as much as the trip itself. Hunter Davies, a former columnist in his late eighties, shared his frustration, recalling a £4,000 quote for a two-week Caribbean holiday which led him to forego travel insurance entirely. Similar difficulties arise with life, health, and car insurance.

What solutions are available? Encouraging older individuals to adapt to new technologies might not always be feasible, especially for those with health issues. Avoiding travel or giving up driving due to high premiums can significantly limit their quality of life.

More regulatory safeguards are needed to prevent discriminatory pricing based on internet usage. Insurance policies should remain affordable, ensuring older adults are not forced to travel uninsured due to prohibitive costs. Considering the numerous insurance policies they’ve paid for throughout their lives, often without claiming, fair pricing should be a given.

Fair pricing should be available to all. The pensioner premium epitomizes this financial injustice.