Pensioner poverty
A recent report by Age UK highlights that certain groups of pensioners continue to face significant challenges regarding the cost of living, with conditions deteriorating compared to the previous year.
The most adversely affected demographics include older individuals with disabilities, older renters, and those subsisting on low to modest incomes.
According to new research from Age UK, one in three pensioners (34%), representing approximately 4.1 million individuals, reported feeling less financially secure as they approach 2025 than they did at the start of 2024.
The overall financial situation has worsened for all pensioners, particularly among specific sub-groups such as older individuals with disabilities, older renters, and those with low to modest incomes. Additionally, other vulnerable groups include older women, individuals living alone, and older caregivers.
In a representative survey of individuals aged 66 and above, participants conveyed to Age UK that their concerns regarding the cost of living remain far from resolved.
The Charity's latest report expresses deep concern regarding the rising energy costs and the challenges faced by older individuals in affording essential items. This situation has been exacerbated by the withdrawal of the Winter Fuel Payment for many on low and modest incomes, including those with health issues.
Starting in April 2025, energy prices are projected to exceed 50% of their levels at the beginning of 2022. Although inflation has decreased to near pre-2022 levels, with the Consumer Price Index (CPI) recorded at 3% in January 2025, the prices of everyday necessities, such as groceries, remain significantly elevated compared to previous years.
Amidst these financial strains, Age UK's research indicates that nearly three in five pensioners (59%), equating to 2.9 million individuals, have opted to reduce their heating or electricity usage. A significant number of these pensioners would prefer to forgo heating altogether rather than incur debt, a sentiment that rises to 65% among female pensioners.
The harsh truth is that it is essential to focus on increasing our savings to prevent the possibility of retiring in financial hardship, a challenge that has become increasingly difficult in today’s economic climate.
Will society be incapable of providing future pensioners with a standard of living comparable to what they enjoy today? Is there a looming generational conflict between the working population and retirees regarding the distribution of national income between wages and pensions?
The succinct answer is: No. These narratives are largely alarmist tales propagated by employers aiming to lessen their contributions to company pension schemes, as well as by insurance companies seeking to increase sales of private pensions.
However, in contemporary capitalist society, there exists another group that does not work yet relies on the labour of others for their upkeep: individuals who derive income from what has traditionally been termed "unearned income." This category includes earnings from rents, interest, and dividends stemming from property ownership. This serves as a fundamental definition of a member of the capitalist class: someone who possesses enough profit-generating assets to sustain themselves without engaging in labour.
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