Minimum level of retirement income needed to prevent surge in pensioner poverty, MPs warn
MPs should ensure that retired people have a minimum income level to prevent retirement poverty.
Labor and Pension Secretary Liz Kendall said that England was faced with the “retirement poverty tsunami” without a major reform in the system while opening the door of an increase in the state retirement age.
Age UK, two million retirees are already in poverty and the number is expected to increase.
Now, deputies at the Commons Work and Pension Committee say that a new national strategy is necessary to solve the problem between the elderly.
They called on the government to determine and present a minimum of minimum retirement income for a “honorable, socially acceptable living standard” in later life.
The report also warns that as people get older, health and social care systems are faced with the risk of being unsustainable if ministers cannot solve the impact of poverty on poor health.
In the report, among the long -term tendencies that “threaten to weaken retirement adequacy”, people rented to later life.
In addition, ministers require those who are entitled to receive pension loans up to £ 4,000 a year.
The current purchase is under 70 percent and 700,000 households are missed.
Getting a pension loan can help elderly people access other advantages such as housing advantage, council tax support, hot home discount, a free TV license and dental treatment.
In the report: “After a decrease in poverty in the 2000s, the number of relative low -income retirees began to increase again since 2010. This has worsened with increases in the cost of living since 2021.”
“In practice, this means to reduce the foundations such as food, energy use and seeing friends in order to manage costs. Health professionals have explained their effects on health. Financial difficulties can accelerate the aging process, which can make an elderly person entering or care more likely.”
“To increase revenues, the government needs to find a strategy to increase the purchase of pension loans. It is a scandal that has missed so many years through a reluctance to claim that many years of use or lack of support.”
“After all, the government must decide what he thinks for an honorable retirement, and then work to ensure that all retirees are at least at this level.
He continued: “More costly rented accommodation, high energy costs, bad health and higher pension rates faced with a combination of poverty, the fight against poverty is not only a DWP (work and retirement department) problem. Therefore, we are calling a strategy between government and prosperity.”
On Tuesday, Chancellor Rachel Reeves said that it was necessary to examine the system to increase the state retirement age to ensure that the system is “sustainable and affordable”.
The state retirement age will rise to 66, but by 2028 to 67.
A government spokesman said: “Supporting retirees is the greatest priority, and thanks to our trilateral lock commitment, millions of people will see that the annual state pension of this parliament has risen up to £ 1,900 at the end of this parliament.
“We have also carried out the biggest campaign so far in order to increase the purchase of pension loans, approximately 60,000 extra retired households have benefited an average of £ 4,300 per year.
“But we know that the retirees of tomorrow will be poorer than today, so we play the Pension Commission to cope with obstacles that prevent too many people from saving.”
“We meet this thoughtful and comprehensive distinguished committee report, which approaches a more comprehensive and progressive strategic overview of the issues that elderly people encounter in low income and proposing processable solutions in recent years, approaching this thoughtful and comprehensive and comprehensive distinguished committee report.”
