UK: 1,00,000 people pushed into poverty after pension age increased in 2020

The decision to raise the age at which individuals may claim pension benefits in the United Kingdom has driven over 100,000 additional people into poverty, accounting for one-in-eight of those affected by the move.

The findings, published in a report by the Institute for Fiscal Studies and the Center for Aging Better, put pressure on the government to expand the social safety net for the most vulnerable.

It revealed that persons with lesser levels of education and those who live in leased housing are the ones who suffer the most, adding to larger worries about a cost-of-living pressure on household earnings.

“These figures are startling,” Emily Andrews, deputy director of the Center for Ageing Better, said. “They indicate that the proportion of 65-year-olds in absolute poverty climbed from one-in-ten before the state pension age doubled to nearly one-in-four just two years later.”

Between late 2018 and the end of 2020, the UK raised the state pension age to 66 from 65. About 700,000 people on the verge of obtaining benefits were left out of a weekly income of around £142 ($174).

60,000 individuals, or around 9% of those surveyed, chose to stay in their positions longer. According to the IFS, the government saved £4.9 billion a year as a result of the shift due to more tax income and fewer benefit payouts, which is about 5% of annual government pension spending.

“Raising the state pension age is a cogent government reaction to rising life expectancy,” said Laurence O’Brien, an IFS research economist. “However, it has a negative impact on household finances.”

Latest articles

Australia: Over 5,000 feral horses culled in Kosciuszko national park

Since the recommencement of aerial shooting in Kosciuszko National Park, more than 5,000 feral horses have been culled, with the NSW environment minister, Penny...

China destroys only major Arabic-style mosque domes

The last major mosque in China to retain Arabic-style features has undergone significant alterations, marking the culmination of a government campaign to "sinicise" the...

Papua New Guinea: Rescue ops start for villagers trapped in deadly landslide

Emergency services are urgently working to reach villages struck by a massive landslide in Papua New Guinea's remote Enga province, where it is feared...

Google to manufacture Pixel phones, drones in India

Tech giant Google is preparing to start manufacturing its Pixel smartphones in India, according to sources familiar with the development who spoke to the...

Related articles