Raising pension to €200 is not enough

THE Government must go beyond the commitment given by the Taoiseach to the Fianna Fáil árd fheis that the State pension would be increased to €200 in next month’s budget.

An increase to just €200 would leave many pensioners below the poverty line, which is currently set at €203.55.

Mr Ahern stressed that concern for older people was at the core of Fianna Fáil’s principles. He now has the opportunity, with unprecedented funds at his disposal, to demonstrate his concern for older people by lifting them out of poverty.

Despite pension increases in recent years, the non-contributory pension is currently €182 a week. The contributory pension is €193.

While there is a general impression that pensioners are sharing the benefits of the economic boom, this is not the case for all older people. Approximately 31% of them (more than 120,000 people) are at risk of poverty, while 3.3% (15,000 people) live in consistent poverty.

Consistent poverty means their income is so low they are unable to afford a second pair of shoes or new clothes, or are unable to pay their energy bills.

Significantly increasing the State pension is the single most effective way of tackling this poverty. Despite increases in recent years, Ireland continues to have the lowest spend on pensions across the EU, at just 3.6% of GDP, compared to the EU-25 average of 12.5%.

If the Government is serious about tackling poverty among older people, it must also commit itself to linking the State pension to the average industrial wage.

We want the Government to set a target of bringing pensions up to 50% of the average industrial wage by 2016.

Eamon Timmins

Head of Advocacy and Communications

Age Action Ireland

30/31 Camden Street

Dublin 2