Friday, January 12, 2018

OAP Poverty

The top 10 percent of retired households now receive 27 times more gross income from private pensions than the bottom 10 percent, according to analysis from Aviva.

 The top tier receives £39,507 per year in income from private pensions, compared to just £1,449 received by the bottom 10 per cent.

Since 2010 income inequality among the retired has been on the rise. This rise in inequality has been attributed to a growing gap between those in receipt of income from private pensions and those without private pensions, the ONS said.

According to Stephen Lowe, group communications director at retirement provider Just Group, ONS figures “show that the oft-painted rosy picture of life for retired households is not consistent with reality”. He said: “Retired households have seen their median disposable income grow at a far slower rate than non-retired households while the poorest retired households are still heavily reliant on the state.”

The ONS data shows that the poorest retired households remain heavily reliant on state support, with the lowest quintile receiving 77 per cent of their disposable income from cash benefits, compared to an average of 45 per cent for all retired households, Just said. Research also published today by the Pensions Policy Institute (PPI) revealed that the poorest pensioners are relying on the state pension for three quarters (78 per cent) of their income.

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