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Age Concern is to close its branch in Swindon with a loss of 18 full-time staff members.
The charity's staff help about 70 older people in the town each day but will close at the end of March.
A spokesman said the closure had been forced because of a shortfall in the charity's pension fund.
He added it was hoped some of its work would be taken on by Swindon Borough Council. Age Concern has had a base in the town for 60 years.
Jo Osorio of Age Concern told BBC News: "We're planning to continue until 31 March.
'Pension scheme'
"About a year ago we found out from the Age Concern Retirement Benefit scheme that we'd be required to pay between £35,000 and £40,000 a year for the next 10 years to pay off our share of the deficit on the pension scheme.
"We are trying to sustain as much as we can beyond 31 March and the council is very committed to the work we've been doing."
In a statement the charity added: "Age Concern (AC) greatly regrets that it has not been possible to find a way to keep the services provided by AC Swindon open.
"Age Concern England is not aware of any other Age Concerns in the South West facing closure as a result of the increased pension payments now required."
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