Like his wife, Lowe suffered from alcoholism. In his final years, Lowe's alcoholism worsened and he was reduced to acting in pantomimes and touring theatre productions. Graham Lord's biography recalls that by 1979, Lowe was suffering from major health problems but continued to drink increasing amounts of alcohol, sometimes passing out on stage or at dinner. He was also a heavy smoker and his weight ballooned. Lowe had long suffered from narcolepsy. On 14 April 1982, Lowe gave a live televised interview on Pebble Mill at One. Later the same day, he collapsed from the onset of a stroke in his dressing room at the Alexandra Theatre, Birmingham, before a performance of Home at Seven, in which he appeared with his wife Joan. He died in hospital early the following morning, aged 66.
He was cremated and his ashes were scattered at Sutton Coldfield Crematorium, following a sparsely attended funeral. Joan did not attend as she refused to miss a performance of Home at Seven and was appearing in Belfast at the time. A memorial service was held in May 1982 at St Martin-in-the-Fields, attended by his family, former colleagues and many friends. His last sitcom, A.J. Wentworth, B.A., with Lowe as a boys' preparatory school master, was shown during July and August 1982.