Policy in relation to pensioner's incomes is informed by the wide range of research carried out in this area, both nationally and internationally. Commitments contained in the Programme for Government in relation to social welfare payment rates and the overall targets for retirement income suggested by the Pensions Board in the National Pensions Review are of particular importance. The latter, published in 2006, re-examined and reaffirmed targets suggested in the National Pensions Policy Initiative in 1998. These targets, which have informed policy since then, recommended a replacement income, from all sources, of 50% of pre-retirement income and a social welfare contributory pension latest rate of 34% of Gross Average Industrial Earnings. The increase in the state pension (contributory) implemented in Budget 2007 has moved the contributory pension ahead of the Pensions Board target and the commitment to a pension of €300 per week contained in the Government programme will, more than likely, see further progress in the area.
The Department also monitors regular statistical releases such as the EU Survey of Income and Living Conditions (SILC) to track the effectiveness of income policies. In this regard, using the official consistent poverty indicator, older people are in a relatively better position than the rest of the population with 3.7% in consistent poverty against 7% overall in 2005.
The risk of poverty rate based on relative incomes is more or less the same for both groups with the rate for older people showing significant improvement from 2004 to 2005, with the rate falling from 27% to 20%. Significant increases in pension rates implemented in 2006 and 2007 should see the position of older people improving further.
The over 80 allowance was increased in 2006 to its present level of €10 per week and there is a commitment in the Programme for Government to pay the allowance also in respect of the qualified adult portion of the pension. There has been no systematic review of the adequacy of the allowance. However, that Social Portrait of Older People, published by the Office of Social Inclusion earlier this year, shows that poverty rates for older pensioners i.e. aged 75 and over, were lower than for younger pensioners.
The forthcoming Green Paper on pensions will include a discussion on the incomes of older people, including the sources of that income and with comparisons of different household types, age and gender. Trends in relation to poverty risks will also be dealt with as well as international comparisons of pensioners' incomes. The Green Paper will be published shortly.
The needs of older people have been, and will remain, a priority for the Government. The Government Programme envisages a 50% increase in social welfare pensions over the next 5 years and further reforms and improvements will be considered in the context of the publication of the Green Paper and the development of a framework for long-term pensions policy that is to follow its publication.
