3 in 10 People Aged 66+ Rely on Social Protection for 90% of their Income

To mark International Day for Eradication of Poverty, Age Action published Spotlight on Income in Older Age—The State of Ageing in Ireland 2023 which reveals the importance of social protection for us all in older age. 3 in 10 people aged 66+ rely on social protection for over 90% of their income and a further 4 in 10 people aged 66+ rely on it for more than half of their income. As a result, older people highly value the Irish state pension, as well as ‘precious’ supports such as Medical Cards and the Free Travel Pass. 

“Age Action’s latest report shows just how reliant we are on the state social protection system for our incomes in older age.  Ireland provides valuable social protection supports to its older population, from the state pension system and supplementary payments through to public transport, housing and healthcare. However, Age Action’s report shows that poverty, deprivation, and income inadequacy are facts of life or many of us who rely on the state pension, which is the second lowest level of income replacement in the EU. In addition to benchmarking social protection rates to 34% of average earnings, a comprehensive cost of ageing study should be commissioned by government to strengthen social protection and public service planning, so they are made adequate and sustainable into the future” said Celine Clarke, Head of Advocacy and Public Affairs at Age Action. 

Highlighting the changing experiences of people in older age Clarke said “The Irish pension system is highly reliant on homeownership which reduces the need for a weekly supplementary payment in older age. Census 2022 found that the absolute number of older renters doubled since 2016. With nearly 10% of those aged 50-64 renting in 2022, we know that the proportion of people who are renting in the private rental sector in older age will increase, indicating that many of us could be relying on the state to support our housing needs in older age.” 

The Spotlight on Income in Older Age report shows that while social protection keeps many out of poverty, many people find it difficult to meet one off costs.  New costs associated with older age, in areas such as health, transport and housing are often large one-off sums that older people cannot cover with their modest weekly incomes, which causes significant distress and anxiety. Surveys show that a fifth of older couples and two fifths of older persons living alone could not cope with a once-off expense of over €1,200. 

“While the state pension is the bedrock of income in older age, many people still struggle to live on it, especially when dealing with new and emerging costs associated with older age. Age Action’s report found that many older people will deprive themselves of basics like heating or socialising to save some money for the next big expense that they fear coming down the line” said Dr Nat O’Connor, policy specialist at Age Action. 

“Age Action’s report finds plenty of evidence of pronounced income inequality in older age, particularly when it comes to gender, with women’s earnings inequality snowballing into even greater pension inequality.  Women’s pensions are one third (35%) lower than men’s on average, which is an example of the World Health Organisation’s concern that the advantages and disadvantages we experience through our lives accumulate and become increasingly pronounced and entrenched as we age” said O’Connor.  

The report demonstrates that a secure income in older age is not only essential for basics like food and energy, but all measures of quality of life in older age.  Incomes often determine what opportunities we have when it comes to looking after our homes and our health, maintaining our independence, and getting involved with our communities and wider society. 

Looking beyond the annual budget cycle, Age Action’s Spotlight on Income in Older Age sets out to tell the story of older persons’ experience of income and living costs, using their own words as well as drawing on the relevant facts and figures.  Age Action’s report contains 66 direct quotes from older people gathered through surveys and focus groups.  “Older people who participated in the research emphasised the importance of non-cash supports like the Free Travel Pass and the Medical Card in helping them meet basic needs. The state pension keeps many people out of poverty and is essential to supporting our dignity, autonomy, and inclusion as we age, but many older persons told us how they worry about losing some of these supports or having them reduced, which creates a lot of anxiety and undermines the security we should enjoy when we are older” said Mary Murphy, Research Officer at Age Action.  

ENDS