Growing inequalities between rich and poor elderly people, say reports

The wealth gap between rich and poor elderly people is growing, according to reports published today.

Research by the Centre for Ageing Research and Development in Ireland project shows the average incomes of the poorest fifth of pensioners have fallen by €24 per week between 2009 and 2011.

Between 2004 and 2011 the poorest older people had a modest rise of €32 per week in total incomes while those with the highest incomes had a rise of €255 in the same period.

Those still working into their 60s earn €10,000 less per year than earners in their peak years, while the richest older people in Ireland earn 14 times more from employment than the poorest.

A separate report by the centre, Wealth of Older People in Ireland North and South, led by Professor Paddy Hillyard, Queen’s University Belfast, found people aged 65 and over in the south have a median disposable weekly income of €446 compared to €790 for those aged 25 to 49, €654 for those aged 50 to 64, and €418 for those aged 16 to 24.

It also shows that 87% of people over 65 own their house outright and 2% own their house with a mortgage, while the average value of savings held by this age group is €5,519.

Those figures compare favourably with those for the North, but the research also indicated a growing disparity between those with access to disposable income and those struggling.

It found that the average weekly household disposable income among over- 50s in the south is €767 but about half live on under €400 per week.

About one-in-eight older people have weekly disposable incomes of €1,000 or more while 26% depend on state transfers as their sole source of income.

Overall, the 16 to 24 age group have the lowest disposable income, followed by those aged 65 and over.

The total value of housing stock in the south is estimated at €280bn, with 46% of it held by people aged 50 and over.

Prof Hillyard said: “The research illustrates the differences in assets and income across the generations, confirming what we have long known that older people have accrued the majority of assets such as property and savings.

However, the research also shows there is considerable inequality among older people themselves.”

Paul McGill, who carried out the second report highlighting the income gap among the elderly, said it was “a myth” pensioners had escaped the impact of the recession and the government policies needed to ensure the elderly were able to access proper levels of care and support.

“We know that it makes little sense to talk about ‘older people’ as though they are all the same,” he said. “There are major differences between the rich and poor and the gap has grown bigger in the last few years.”

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