Link pensions to wage increases

NEWS that inflation has risen to 5% is of concern to everyone — but those on fixed, low incomes are hit hardest by the rising cost of living.

More than one in three pensioners in this country (37%) receive the State pension (non-contributory) of just €200 a week — some €3.55 under the poverty line. The remainder of pensioners do a little better on the State pension (contributory) of €209.30. For these people, rising inflation and a fixed income mean tough decisions — eg, cutting back on food or not turning on the central heating.

Calls by the trade union movement to reduce VAT would benefit older people. However, at the heart of the problem is the fact the State pension system does not recognise the contribution older people have made to the current economic growth, and so they cannot share the fruits of that growth.