Mature Decisions

Over the past decade, pensioner poverty has been rising. By the government’s standard income-based poverty measure, the poverty rate increased from 14 per cent in 2010-11 to 16 per cent in 2022-23, which means there were 1.9 million pensioners in poverty.

Addressing pensioner poverty is crucial. First, our social contract requires dignity in retirement, and for future generations to have a living standard at least as good as their predecessors. But there is also a strong fiscal case: the health and social care cost of pensioner poverty is estimated to be between £3bn and £5bn annually.

This report first analyses the nature of the challenge. It then explores options for pensioner social security reform, in the near and longer term, for consideration as part of the government’s pensions review.