Concessionary travel for OAPs, whether it be bus, train, tokens or whatever else, should be means tested, in my opinion. As said above, some OAPs are very wealthy indeed, others live in near poverty. The same test should apply to winter fuel allowances and other additional benefits also. Quite frankly, there is no need or justification to ply people with freebies when they are well able to afford it themselves. Such handouts should be reserved only for the needy.
Pensioners in Merseyside (of which I am one) are fortunate to enjoy free off-peak rail travel. I don't see it as a 'handout' but as an incentive. Means testing is insulting and inefficient (and there has to be a cut-off point which is arbitrary and unfair); in practice wealthier seniors with access to cars self-select and rarely use their concessionary passes.
The more incentives that will get people out of polluting and congestion-causing cars and onto public transport the better. And anything that encourages older people to get out and about is beneficial not just to their own personal health but to the health of society.
The rail element of my travel pass is confined to Merseyside (plus the Merseyrail lines to Chester and Ormskirk). The bus element is of course for the whole of England (not Wales or Scotland), but only on local buses. If the free rail travel were offered on a national basis it might be difficult to ensure that it was confined to 'local' trains (however defined), so restricting rail travel to the holder's own area might be reasonable.