As many as 1.8 million older people are "living in poverty" or just above the breadline, meaning they are unable to afford the health or social care they need, according to Age Concern.
Spokesperson Samuel Heath said that while many pensioners benefit from discounts on public transport, the situation is such that many would not have any money to spend when they arrive at their destination.
Mr Heath continued that due to the low income many elderly people are on, they do not have the quality of life they should.
Research undertaken by the Institute of Fiscal Studies on behalf of Help the Aged indicated that 500,000 elderly people could be lifted out of poverty if there was a complete adoption of means-tested benefits including tax benefit, pension credit and housing benefit.
Age Concern is a charity that aims to avoid poverty in retirement and encourage the independence and security of older people.