Labour would axe winter fuel payments for hundreds of thousands of the UK's richest pensioners, Ed Balls will signal.
Support for better-off OAPs "can no longer be a priority" at a time of harsh public spending cuts, the shadow chancellor will declare. Mr Balls will hail the move to end universality as an example of the Opposition's willingness to show "iron discipline" if it takes power in 2015.
He will urge Chancellor George Osborne to heed warnings about the UK's economic prospects and increase borrowing to boost growth. But he will insist Labour is ready to deal with a "bleak inheritance" if Mr Osborne fails to change course on the coalition's austerity programme.
Universal benefits for pensioners have become a key battleground, with David Cameron under pressure to abandon a pledge to protect them. Tory and Lib Dem colleagues believe they should be means-tested to protect other services from the £11.5 billion of further cuts for 2015/16 being sought by Chancellor George Osborne in a spending review this month.
Under Labour plans, the payments would be stripped from all pensioners with sufficient income to pay higher or top-rate income tax - around 600,000 individuals at present - saving £100 million a year.
Opposition leader Ed Miliband indicated recently that the payments were under review - although a party source insisted afterwards that he continued to believe universality was "part of the bedrock" of the welfare system.
Making a speech in London's Docklands, Mr Balls will say: "With the Chancellor refusing to change course, Labour must start planning now for what will be a very tough inheritance in 2015. It will require us to govern in a very different way with much less money around. We will need an iron discipline and a relentless focus on our priorities.
"And this iron discipline on spending control must go alongside action to deliver a fairer approach to deficit reduction. And that will mean answering big and immediate questions for 2015 in our manifesto. When our NHS and social care system is under such pressure, can it really remain a priority to pay the winter fuel allowance - a vital support for middle and low income pensioners - to the richest 5% of pensioners, those with incomes high enough to pay the higher or top rates of tax?
"Labour believes the winter fuel allowance provides vital support for pensioners on middle and low incomes to combat fuel poverty. That's why we introduced it in the first place. But in tough economic times we have to make difficult choices about priorities for public spending and what the right balance is between universal and targeted support. So at a time when the public services that pensioners and others rely on are under strain, it can no longer be a priority to continue paying the winter fuel allowance to the wealthiest pensioners."
A Labour source said no other universal benefits, such as bus passes, were under review. Mr Balls will say the spending review should be used to "take immediate action to get the economy growing and invest in our long-term future.
Seven retirement nightmares
Balls 'to axe rich OAP fuel payout'
Figures from charity Age UK show that 29% of those over 60 feel uncertain or negative about their current financial situation - with millions facing poverty and hardship. Even though saving for retirement is not much fun, the message is therefore that having to rely on dwindling state benefits in retirement is even less so. To avoid ending up in this situation, adviser Hargreaves Lansdown recommends saving a proportion of your salary equal to half your age at the time of starting a pension. In other words, if you are 30 when you start a pension, you should put in 15% throughout your working life. If you start at 24, saving 12% of your salary a year should produce a similar return.
Many older couples rely on the pension income of one person - often the man. Should that person die first, the other person can therefore be left in a difficult position financially.
One way to prevent financial hardship for the surviving person is to take out a joint life annuity that will continue to pay out up to 67% of the original payments to the surviving partner should one of them die.
The disadvantage of this approach, however, is that the rate you receive will be lower. Again, the Pensions Advisory Service on 0845 601 2923 is a useful first port of call if you are unsure what to do.
Around 427,000 households in the over-70 age groups are either three months behind with a debt repayment or subject to some form of debt action such as insolvency, according to the Consumer Credit Counselling Service (CCCS).
Its figures also show that those aged 60 or older who came to the CCCS for help last year owed an average of £22,330. Whether you are retired or not, the best way to tackle debt problems is head on.
Free counselling services from the likes of CCCS and Citizens Advice can help with budgeting and dealing with creditors.
Importantly, they can also conduct a welfare benefits check to make sure you are receiving the pension credit, housing and council tax benefits, attendance and disability living allowances you are entitled to.
The average UK pensioner household faces a £111,400 tax bill in retirement as increasing longevity means pensioners are living on average up to 19 years past the age of 65, according to figures from MetLife. And every year in retirement adds an extra £5,864 in direct and indirect taxes based on current tax rates to the costs for the average pensioner household. You can be forced to go bankrupt if you fail to pay your taxes, so it is vital to factor these costs into your retirement planning.It is also important to check that you are receiving all the benefits and tax breaks you are entitled to if you want to make the most of your retirement cash.
The cost of a room in a care home in many parts of the country is now over £30,000 a year, according to figures from Prestige Nursing and Care. So even if the prime minister announces a cap on care costs - last year the economist Andrew Dilnot called for a new system of funding which would mean that no one would pay more than £35,000 for lifetime care - families will still face huge accommodation costs. Ways to cut this cost include opting for home care rather than a care home. Jonathan Bruce, managing director of Prestige Nursing and Care, said: "For older people who may need care in the shorter term, home care is an option which allows people to maintain their independence for longer while living in their own home and should be included in the cap." However, the only other answer is to save more while you can.
Older Britons are often targeted by unscrupulous criminals - especially if they have a bit of money put away. For example, many over 50s were victims of the so-called courier scam that tricked into keying their pin numbers into their phones and handing their cards to "couriers" who visited their homes. It parted consumers from £1.5 million in under two years. Detective Chief Inspector Paul Barnard, head of the bank sponsored dedicated cheque and plastic crime unit (DCPCU), said: "Many of us feel confident that we can spot fraudsters, but this type of crime can be sophisticated and could happen to anyone." The same is true of boiler room scams that target wealthier Britons with money to invest, offering "once-in-a-lifetime" opportunities to snap up shares at bargain prices. Tactics to watch out for include cold calling, putting you under pressure to pay up or lose the opportunity for good, and claiming to have insider information that they are prepared to share with you.