Concerns over possible cuts to the State Pension in the next budget [13/5/2010]

Recent research shows older people ‘financially stretched’ by the recession

The Older & Bolder campaign has this afternoon said that any cuts to the State Pension would have a significant and detrimental impact on older people’s lives.  Older & Bolder’s statement is in response to comments made by the Minister for Social Protection, Eamon Ó Cuiv TD, earlier today when he said that he couldn’t rule out cuts to the Old Age Pension in the next Budget. Older & Bolder is an alliance of eight of the country’s leading age NGOs

Older & Bolder’s Director, Patricia Conboy, said that recent research carried out for Older & Bolder, showed that older people are being financially stretched by the recession and any cuts in the State Pension would have a significant impact on older people’s lives.

“The facts show that older people are concentrated in the lower income brackets and they are heavily reliant on State Pensions and other income transfers like the Fuel Allowance and free travel.  A significant portion of older people are at risk of poverty and this would be higher if the Pension and other supports are cut back in next December’s Budget.”

Patricia Conboy said that the CSO SILC (Survey on Income and Living Conditions) results for 2008, published late last year, highlight the risk of poverty for older people. Before all social transfers (State Pension, Fuel Allowance, Household Benefits):

•        96% of older people living alone are at risk of poverty;
•        84% of older people aged 65-74 are at risk of poverty;
•        90% of older people aged 75+ are at risk of poverty.

“Our research shows that even before such cuts are made, the recession is already having a detrimental impact on older people’s quality of life.  Common mechanisms used by older people to cope with the recession include: heating and living in one room in the house; shopping for discounted and cheaper food and fuel products; avoiding purchase of new clothes and furnishings; and minimising use of their cars.” 

Patricia Conboy said that a cut in the State Pension and other supports, such as Fuel Allowance and the Household Benefits Package, would be a cruel blow to older people who are already living frugally from week to week with independence but without capacity to save or cope with unexpected expenses.

“Many pensioners are managing on a week to week basis.  Some are tenaciously holding onto ‘big ticket items’ such as private health insurance, car ownership, help with home and garden maintenance, but they are stretched to the limit to do this and worried that they will not be able to sustain the costs in the future.  Our research shows that older people are also very concerned about the difficulties they would face if they needed nursing home care or expensive medical treatment in the future.

“The possibility of cutbacks in supports and services that now make a tangible difference to their quality of life is also a real worry for older people.  These services provide help with transport, carer support, social contact and home help,” Patricia Conboy concluded.

Older & Bolder’s members are Active Retirement Ireland, Age & Opportunity, Alzheimer Society of Ireland, Carers Association, Irish Hospice Foundation, Irish Senior Citizens Parliament, the Older Women’s Network and the Senior Help Line. 

FOR FURTHER INFORMATION, PLEASE CONTACT:

Jemma Hogan, Montague Communications on 01- 8303116 or 085 722 9024
Pat Montague, Montague Communications on (01) 8303116 or 086 791 4429