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More 65-year-olds living in poverty due to rising of state pension age

EVEN more 65-year-olds are living in poverty due to the state pension age rising to 66, a damning study finds.

Around one in seven 65-year-olds were in income poverty in late 2020 because of the state pension age increasing by one year from 65 to 66, the Institute for Fiscal Studies (IFS) found.
 
The key impact of this was that 65-year-olds missed out on state pension income of £142 per week on average, the think tank said.

The absolute income poverty rate for 65-year-olds rose by 14 per cent — nearly 100,000 people — to reach 24 per cent by late 2020, according to the findings, funded by charitable foundation the Centre For Ageing Better.

Laurence O’Brien, research economist at IFS and co-author of the report, said those in income poverty were concentrated among renters, single people and those with lower levels of education.

Emily Andrews, deputy director for work at the Centre for Ageing Better said: “These statistics are shocking and show that the number of 65-year-olds in absolute poverty rose from one in 10 before the state pension age increase to almost one in four just two years later.

“The severity of this situation means it is crucial the government gets serious on improving access to work for people in their 60s.

“For those who are unable to access work, the raising of the state pension age will leave them poorer – and in many cases, actually impoverished."

The Department for Work and Pensions (DWP) said there is a wealth of additional financial support available when people reach state pension age, including pension credit – which unlocks an additional £650 cost-of-living payment for those currently claiming it – and Winter Fuel Payments.

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