Pensioners 'get poorer as they get older'
UK pensioners suffer greater financial hardships as they get older, according to new research.
A report from the Pension Policy Institution (PPI) paints a dire picture as pensioners facing growing costs throughout retirement - but are lacking the financial backing as incomes rising just with prices fall behind the true cost of living.
The PPI highlights three periods of retirement with those in their 60s being active and demanding high levels of income; those in their 70s being less active but still independent so seeing income needs drops; and, those in their 80s and 90s seeing disability, widowhood, and the need for long-term care all contributing to higher costs.
However, pensioners' income is likely to decline in retirement relative to income of the rest of the population.
While the government has pledged to increase the state pension with rising earnings, the state second pension and private pensions still stick with price inflation.
Niki Cleal, PPI Director, said: "Pensioners may not have sufficient resources to meet all of their extra needs in later life, such as to meet the additional costs of disability, widowhood or the need for long-term care and to maintain their desired standard of living.
"This research shows that pensioners will need a range of assets and sources of income to help them cope with the uncertainty and extra costs they may face later in their life."
Charities Age Concern and Help the Aged have stated the UK "cannot ignore our ageing society and the financial cost of living longer.
"The current crumbling social care system needs an emergency cash injection of at least £1 billion as well as urgent long-term radical reform," said Michelle Mitchell, charity director of Age Concern and Help the Aged.
"It is also vital we start to address the balance between what the individual should plan for financially in later life and what level of care people can expect from the state. No-one likes to think about poor health and the expense of growing old, but without action, we are storing up a ticking time-bomb for the future."
The Liberal Democrats claim the report shows the government's changes to the pension system will not prevent pensioners becoming poorer as they get older.
"Ministers have refused to say when the link between pensions and earnings will be restored.
Steve Webb, Liberal Democrat work and pensions spokesman, said: "Ministers have refused to say when the link between pensions and earnings will be restored.
"The basic state pension is simply too little to live on for the millions of pensioners who have no other income."
He added: "Pensioners should not be forced to rely on complex means-tested benefits in their retirement, which has put many off from even claiming.
"We need a more generous, universal pension based on citizenship which would give all pensioners enough to live on, whatever their age."
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