Exploring the Poverty Struggles of the Elderly Population (IHR14)
In a recent research initiative, the Department for Work and Pensions (DWP) has delved into the complex relationship between material deprivation and low income among pensioners. The findings from the In-House Research No. 14 aim to deepen the understanding of the lived experiences of older people and contribute to the ongoing debate regarding poverty measurement.
The research, which explores the relationship between material deprivation and low income, highlights how low income often leads to material deprivation in this group. Material deprivation, referring to the lack of wealth, goods, and conveniences necessary for a decent standard of living, is a significant indicator of poverty beyond income measures alone. Pensioners with lower incomes are more likely to experience material deprivation, which can include difficulties in affording basic needs and items that contribute to well-being and social participation.
This relationship is crucial as material deprivation serves as a direct indicator of poverty, capturing the lived experience of economic hardship among older adults. Pensioners with low income face increased vulnerability to material deprivation, which in turn correlates with poorer health outcomes and reduced quality of life. The research suggests that income alone does not fully capture the extent of hardship, as material deprivation also reflects the inability to access necessary goods and services that income may not guarantee due to additional expenses or financial shocks in older age.
The analyses imply that social insurance systems and policies that support income stability, such as long-term care insurance and pension reforms, can help alleviate both low income and material deprivation by buffering economic shocks and improving access to necessary resources for pensioners. The research advocates for a broader social safety net to reduce inequalities faced by pensioners by addressing both income insufficiency and material deprivation concurrently.
Since 2009/10, the Households Below Average Income (HBAI) series has reported on a measure of pensioner material deprivation. The FRS asks respondents about their access to 15 goods and services to calculate a material deprivation score. The findings from the reports will contribute to the broader discourse on poverty and its measurement, and the analyses are intended to be used in shaping the Department's policies and strategies.
The research package, which includes both quantitative and qualitative reports, offers a comprehensive account of material deprivation among older people. The reports provide a detailed account of the nature of material deprivation among older people, offering insights into how the material deprivation measure works among this demographic. The research is accompanied by in-depth qualitative research on the same topic.
In summary, the research indicates a strong correlation between low income and material deprivation among pensioners. Addressing material deprivation requires policies that stabilise pensioners’ incomes and reduce out-of-pocket costs related to health and care. Social insurance and pension reforms are crucial in reducing both income poverty and material deprivation among older adults, ensuring that pensioners avoid the severe consequences of economic hardship beyond just low income.
A full summary of the findings from the quantitative and qualitative reports is available at www.ourwebsite/ourgovernment/uploads/system/uploads/attachment_data/file/197676/827summ.pdf.
- The research package reveals that material deprivation, a lack of essential goods and services for a decent standard of living, is closely linked to poor mental health among pensioners due to financial hardships.
- To improve the health and wellness of pensioners, it's essential to address material deprivation in addition to income, by implementing social insurance systems and policies that maintain income stability and cover necessary health-and-wellness expenses.
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