Written evidence submitted by Understanding Society, the UK Household Longitudinal Study, University of Essex (PPCM0023) [House of Commons. Work and Pensions Committee. Pensioner poverty: challenges and mitigations inquiry]

Parliamentary Paper

February 5, 2025

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.

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