Nearly 27 per cent of people over 65 in Ireland are at risk of poverty despite the economic boom, Age Action Ireland (AAI) said today.
In a pre-budget submission AAI said it was "shameful" that 15,000 over-65s live in consistent poverty.
The group has called on the Government to increase the state non-contributory pension to at least €206 per week - an increase of €24 - in the next budget.
According to the group despite pension increases in recent years, Ireland continues to have the lowest spend on pensions across the EU at just 3.6 per cent of GDP, compared to the EU-25 average of 12.5 per cent.
The group also called on the Government to link the State Pension to the average industrial wage and to set a target of bringing pensions up to 50 per cent of the average industrial wage by 2016.
"We are urging the Government to use its last budget to take major steps to tackle this situation," AAI's spokesman Eamon Timmins said.
