A major factor in the decline of poverty among pensioners over recent years has been the increase in the number of people who retire with an occupational pension scheme, according to research by the UK's National Association of Pension Funds (NAPF).
‘Poverty among Pensioners’ concludes that most pensioners in the UK are not poor, despite acknowledging that 25% remain “at risk of social exclusion and are kept afloat by the safety net of means-tested State benefits.”
“The encouraging conclusion to be drawn from this research is that a quarter of pensioners are now well off by the standards of the rest of the population and about half have standards which are well within the mainstream”, said the report.
“Receipt of an occupational pension is one of the most important factors in reducing an individual’s probability of being poor... .”
The current analysis included over 10,500 individuals, 480 of which were retired but under state pension age.
Other findings included:
- 10% of those over the State pension age live on incomes below the mainstream- pensioners in their 70s are likely to be poorer than younger ones or those over 80- poor pensioners are often women in their 70’s living alone- the 2% of ethnic minority pensioners are twice as likely to be poorer than their white counterparts- early retirees are generally not poor and have substantial occupational pensions and other forms of savings.
By Madhu Kalia
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