Summary
Our evidence relates specifically to research using Understanding Society data, and is relevant to the Committee’s questions: * What is the state of pensioner poverty across the UK? Which groups are most likely to be affected? * To what extent does the current State Pension and other pension age benefits prevent pensioner poverty? Summary: * Almost 20% of pensioners were living in poverty before the cost of living crisis. * Increasing take-up of Pension Credit among those eligible would reduce poverty significantly. * As many as 10% of pensioners are in persistent poverty. * Those who live alone, those who don’t own their own home, and Black pensioners are most at risk of persistent poverty. * A reduction in social benefit income is strongly linked to entering poverty. * Nearly 7 in 10 retirees have incomes below the target income replacement rate recommended by the Pensions Commission. * Future generations may experience less poverty as more see the benefits of automatic pension enrolment when they retire. * However, more people living in rented accommodation in retirement could see a larger slice of their pension taken up by housing costs.