The number of pensioners living in relative poverty has risen by 300,000 to 2.5 million over the past year. Yes, in one year. The number of children living in poverty has also increased, by 100,000, to stand at close to 3 million. Now, we can’t help the latter, but we can help the former. If more retirees got the right pension annuity rate at retirement there would be less in relative poverty.

The government claims to have taken some 2 million pensioners out of poverty since 1997. Whatever the truth of that claim, it is clear that the trend is now very much the wrong way.

Labour blames the increase in pensioner poverty on ‘rising food and fuel costs’.

Age Concern says: ‘It is a national disgrace that pensioner poverty levels have begun to rise.’ It accuses the government of ‘failing those that need their help the most’.

So, what’s causing this problem?

And what is the cure? A more generous state pension, perhaps? One off handouts to deal with current food and fuel inflation? And who should pay for it?

And what about longer term solutions? Stronger requirements on employers to provide better pensions, maybe? Or should it all be about empowring the individual to make their own decisions?

This entry was posted on Thursday, July 24th, 2008 at 8:20 am and is filed under Annuity rates, General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.