Sign up to The Irish Times Archive (1859 - 2008)My Account »

The recession is having a major impact on older people with many experiencing high levels of anxiety over the threat of reduced incomes, increased taxes and cuts in vital services, according to a new study.

The Inequalities, Pensions and the Recession study, which was commissioned by the Centre for Ageing Research and Development (CARDI), shows the rate of older people at risk of poverty fell to just over 11 per cent in 2008 from 24.7 per cent in 2004.

The percentage of people in persistent poverty also declined from 3.2 per cent to 1.3 per cent over the same period.

However, while the poverty risk rate has fallen the report shows that those aged over 65 are heavily reliant on the State pension for their income and that cuts to it or to other benefits – such as the Christmas Bonus – are likely to cause hardship.

The research, which was led by Professor Paddy Hillyard, Emeritus Professor at Queen’s University, Belfast in association with Dr Maureen Lyons of University College Dublin (UCD), reveals significant disparities in income and pensions among the older population across the island of Ireland.

According to the study, 23 per cent of those aged over 65 in Northern Ireland are at a significant risk of poverty. The number of single pensioners at risk has risen by 57 per cent in the last six years and couples by 26 per cent.

A single pensioner living along in the Republic with allowances receives approximately €254 per week, 57 per cent more than his or her counterpart in the north. For a couple, the difference is even greater with couples in the south receiving 75 per cent more than those across the border.

The research shows that older women across the island of Ireland have a higher risk of poverty than men, in part because they receive fewer and lower occupational pensions than men. The evidence suggests the gap is growing.

According to the study, over 9 per cent of people aged over 65 in both jurisdictions are still in employment.

Commenting on the research, Prof Hillyard said it showed that there was great concern among older people North and South about the impact of the recession.

“We found that the recession is having an impact on older people across Ireland. Many pensioners have significant concerns about the cuts in incomes and services that may lie ahead. Many who had looked forward to a comfortable old age are now fearful of facing financial hardship,” he said.

“While substantial moves have been made in reducing pensioner poverty in the Republic of Ireland in recent years, the study underlies the need to safeguard this progress and ensure that those most at risk are protected in any proposed cuts,” Prof Hillyard added.