Charities seek State pension hike

Provision of an adequate State pension must be among the top priorities of the next government if poverty among pensioners is…

Provision of an adequate State pension must be among the top priorities of the next government if poverty among pensioners is to be eliminated, two charities warned today.

Age Action and the National Federation of Pensioners Association (NFPA) said that despite the economic boom, one in five pensioners is at risk of poverty while 3.7 per cent experienced "grinding" poverty, which the charities defined as being unable to afford basics such as a proper winter overcoat or a second pair of shoes.

The two organisations called for the state pension to be index-lined to the average industrial wage, so that as wages go up, so do pensions. The charities also want the State pension to be increased to 50 per cent of the average industrial wage by 2016.

Currently, this would equate to just over €300 a week.

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"The €200 target set by the current government in 2002 has been achieved, but this is currently €3.55 under the poverty line," Age Action chief executive Robin Webster warned.

"More than one-third of pensioners depend on this."

With a gradually ageing population, Age Action and the NFPA are also anxious that older people secure the right to comprehensive high quality services to enable them continue living in their own homes. Currently, just five per cent of older people will go into a nursing home.

The needs of the remaining 95 per cent must be met to enable live independently and with dignity in their own homes, the charities said.

Older people account for 11 per cent of the population. However, by 2021, it is predicted 15 per cent of the population will be over-65, a figure that rises to 20 per cent by 2036.

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist