Official Statistics
8. Rate of pensioner poverty: data table
Updated 11 July 2014
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| 8. Rate of pensioner poverty |
|---|
| Data source |
| Family Resources Survey |
| Time period and availability |
| Splits currently available by age, disability, ethnicity and gender. |
| Latest data available at July 2014 covered 2012/13. |
| Produced once a year covering a financial year, with a delay of just over a year after the end of the period referred to. |
| Data do not include care home residents due to the sample for the survey used consisting of the private household population. |
| What does this tell us? |
| The pensioner poverty indicator measures the percentage of pensioners in households with incomes below 60 per cent of equivalised contemporary median income, After Housing Costs, meaning they are in low income. |
| The Government wants all pensioners to have a decent and secure income in retirement. We have restored the earnings link for the basic State Pension and introduced the 'triple lock' (the guarantee that the basic State Pension will increase by the highest of earnings growth, price increases or 2.5 per cent). In addition, the Government is protecting key benefits for older people, including free eye tests, free NHS prescriptions, free bus passes, free television licenses for those aged 75 and over and Winter Fuel Payments. We have introduced automatic enrolment into a workplace pension (whereby instead of choosing whether to join a scheme, individuals have to opt out actively) to make the decision to save the default. The incentive to save is reinforced by a mandatory minimum employer contribution. |
| How will an improvement be shown? |
| Generally, a decrease in this indicator will demonstrate that an improvement has been achieved, but external factors such as wider economic conditions also need to be taken into account. |
| Links to other information that you may find useful |
| Further analysis of Households Below Average Income (HBAI) data are shown in the annual HBAI publication, available at: https://www.gov.uk/government/organisations/department-for-work-pensions/series/households-below-average-income-hbai--2 |
| Table 8.1: Poverty rate for pensioners by age, UK, 2009/10 - 2012/13 (relative low income, After Housing Costs) |
| Age |
| Under 65 |
| 65-69 |
| 70-74 |
| 75-79 |
| 80-84 |
| 85+ |
| Source: Households Below Average Income 2012/13 |
| The oldest pensioner group has the highest poverty rate, while it is relatively similar across the other age groups. |
| Between 2011/12 and 2012/13 there were small movements in the poverty rates for different age groups, while the overall poverty rate remained flat on the year6. |
| Notes: |
| 1. This indicator is measured using Households Below Average Income statistics sourced from the Family Resources Survey. The indicator measures the percentage of pensioners with incomes below 60 percent of contemporary equivalised median income, After Housing Costs. Data are annual with approximately a 12-month time lag after the end of the survey period. |
| 2. All estimates are based on survey data and are therefore subject to uncertainty. Small differences should be treated with caution as these will be affected by sampling error and variability in non-response. Estimates showing ethnic breakdowns are presented as three-year averages because of small sample sizes. However, the figures must still be treated with some caution, as the sample sizes are still small for certain ethnic minority groups. |
| 3. Proportions of individuals in low-income households have been rounded to the nearest percentage point. |
| 4. Results cover the financial year for each year, i.e. April to March. |
| 5. Pensioners are defined as all those adults above State Pension age. The SPa is 65 for men born before 6th December 1953. For women born on or before 5th April 1950, SPa is 60. From 6th April 2010, the SPa for women born on or after 6th April 1950 will increase gradually between April 2010 and November 2018. Other changes are planned or have been announced from December 2018 when the State Pension age for both men and women will start to increase to reach 66 in October 2020. Further increases to bring the SPa to 67 are proposed to be phased in between 2026 and 2028. These changes are published at: https://www.gov.uk/changes-state-pension. For 2012/13 data, women are over SPa based on date of birth and date of the survey interview. For further guidance on calculating State Pension eligibility age, see: https://www.gov.uk/calculate-state-pension |
| 6. Some changes between years will be small in relation to sampling variation and other sources of error and may not be statistically significant. This is relevant for particular sub-groups, as these will have smaller sample sizes than the overall survey sample size. For these sub-groups it is important to look at long-term trends. Statistical significance is not provided for these particular breakdowns. |
| Table 8.2: Poverty rate for pensioners by disability, UK, 2009/10 - 2012/13 (relative low income, After Housing Costs) |
| Disability status |
| Those living in families where no-one is disabled |
| Those living in families where someone is disabled |
| Source: Households Below Average Income 2012/13 |
| In 2012/13 pensioners living in families containing one or more disabled member had a similar poverty rate compared to pensioners living in families not containing a disabled member. |
| Between 2011/12 and 2012/13, the rate of pensioner poverty for those living in families where someone is disabled rose by 1 percentage point, and fell by 1 percentage point for those in families where no-one is disabled. However, neither of these changes were statistically significant. |
| Notes: |
| 1. This indicator is measured using Households Below Average Income statistics sourced from the Family Resources Survey. The indicator measures the percentage of pensioners with incomes below 60 percent of contemporary equivalised median income, After Housing Costs. Data are annual with approximately a 12-month time lag after the end of the survey period. |
| 2. All estimates are based on survey data and are therefore subject to uncertainty. Small differences should be treated with caution as these will be affected by sampling error and variability in non-response. Estimates showing ethnic breakdowns are presented as three-year averages because of small sample sizes. However, the figures must still be treated with some caution, as the sample sizes are still small for certain ethnic minority groups. |
| 3. Proportions of individuals in low-income households have been rounded to the nearest percentage point. |
| 4. In 2012/13, in order to fully comply with the Equality Act definition, the Family Resources Survey (FRS) adopted the new suite of harmonised questions on disability. Disabled people are identified as those who report any physical or mental health condition(s) or illness(es) that last or are expected to last 12 months or more, and which limit their ability to carry out day-to-day activities a little, or a lot. |
| 5. No adjustment is made to disposable household income to take into account any additional costs that may be incurred due to the illness or disability in question, and disability benefits have been included in the equivalised household income used. This means that the position in the income distribution of these groups, as shown here, may be somewhat upwardly biased. Results based on incomes excluding disability benefits are available on request. |
| 6. '..' means data is not available due to small sample size. |
| 7. Results cover the financial year for each year, i.e. April to March. |
| 8. Some changes between years will be small in relation to sampling variation and other sources of error and may not be statistically significant. This is relevant for particular sub-groups, as these will have smaller sample sizes than the overall survey sample size. For these sub-groups it is important to look at long-term trends. Statistical significance is not provided for these particular breakdowns. |
| 9. Pensioners are defined as all those adults above State Pension age. The SPa is 65 for men born before 6th December 1953. For women born on or before 5th April 1950, SPa is 60. From 6th April 2010, the SPa for women born on or after 6th April 1950 will increase gradually between April 2010 and November 2018. Other changes are planned or have been announced from December 2018 when the State Pension age for both men and women will start to increase to reach 66 in October 2020. Further increases to bring the SPa to 67 are proposed to be phased in between 2026 and 2028. These changes are published at: https://www.gov.uk/changes-state-pension. For 2012/13 data, women are over SPa based on date of birth and date of the survey interview. For further guidance on calculating State Pension eligibility age, see: https://www.gov.uk/calculate-state-pension |
| Table 8.3: Poverty rate for pensioners by ethnic group of head of household, UK, 2007/08 - 2012/13 (relative low income, After Housing Costs) |
| Ethnic group of head (3-year average) |
| White |
| Mixed / Multiple Ethnic Groups |
| Asian or Asian British |
| Indian |
| Pakistani |
| Bangladeshi |
| Chinese |
| Any other Asian background |
| Black/ African/ Caribbean/ or Black British |
| Other ethnic group |
| Source: Households Below Average Income 2012/13 |
| The poverty rate is higher for pensioners living in households headed by someone from an ethnic minority. |
| Comparison between the 2009/10 to 2011/12 figures and the 2010/11 to 2012/13 figures shows that the poverty rate fell slightly for the ‘White’ ethnic group, remained level for the Asian or Asian British’ group and rose for the ‘Black or Black British’ group9. |
| Notes: |
| 1. This indicator is measured using Households Below Average Income statistics sourced from the Family Resources Survey. The indicator measures the percentage of pensioners with incomes below 60 percent of contemporary equivalised median income, After Housing Costs. Data are annual with approximately a 12-month time lag after the end of the survey period. |
| 2. All estimates are based on survey data and are therefore subject to uncertainty. Small differences should be treated with caution as these will be affected by sampling error and variability in non-response. Estimates showing ethnic breakdowns are presented as three-year averages because of small sample sizes. However, the figures must still be treated with some caution, as the sample sizes are still small for certain ethnic minority groups. |
| 3. Proportions of individuals in low-income households have been rounded to the nearest percentage point. |
| 4. '..' means data is not available due to small sample size. |
| 5. Results cover the financial year for each year, i.e. April to March. |
| 6. Ethnicity figures reflect the new harmonised standards published in August 2011. |
| 7. As the HBAI is derived from sample data all the figures are subject to sampling error. Different figures in HBAI are subject to widely differing levels of sampling error. For changes in the overall pensioner group to be statistically significant they would need to be in the order of 1.3 percentage points or around 130-140,000 pensioners. Statistical significance is not provided for these particular breakdowns. |
| 8. Pensioners are defined as all those adults above State Pension age. The SPa is 65 for men born before 6th December 1953. For women born on or before 5th April 1950, SPa is 60. From 6th April 2010, the SPa for women born on or after 6th April 1950 will increase gradually between April 2010 and November 2018. Other changes are planned or have been announced from December 2018 when the State Pension age for both men and women will start to increase to reach 66 in October 2020. Further increases to bring the SPa to 67 are proposed to be phased in between 2026 and 2028. These changes are published at: https://www.gov.uk/changes-state-pension. For 2012/13 data, women are over SPa based on date of birth and date of the survey interview. For further guidance on calculating State Pension eligibility age, see: https://www.gov.uk/calculate-state-pension |
| 9. Some changes between years will be small in relation to sampling variation and other sources of error and may not be statistically significant. This is relevant for particular sub-groups, as these will have smaller sample sizes than the overall survey sample size. For these sub-groups it is important to look at long-term trends. Statistical significance is not provided for these particular breakdowns. |
| Table 8.4: Poverty rate for pensioners by gender, UK, 2009/10 - 2012/13 (relative low income, After Housing Costs) |
| Gender |
| Male |
| Female |
| Source: Households Below Average Income 2012/13 |
| The rates of pensioner poverty have fallen slightly for both males and females since 2009/10, reflecting the downward trend in the overall rate of pensioner poverty. |
| Between 2011/12 and 2012/13 the poverty rates remain unchanged for both males and females, at 12 per cent and 14 per cent respectively6. |
| Notes: |
| 1. This indicator is measured using Households Below Average Income statistics sourced from the Family Resources Survey. The indicator measures the percentage of pensioners with incomes below 60 percent of contemporary equivalised median income, After Housing Costs. Data are annual with approximately a 12-month time lag after the end of the survey period. |
| 2. All estimates are based on survey data and are therefore subject to uncertainty. Small differences should be treated with caution as these will be affected by sampling error and variability in non-response. Estimates showing ethnic breakdowns are presented as three-year averages because of small sample sizes. However, the figures must still be treated with some caution, as the sample sizes are still small for certain ethnic minority groups. |
| 3. Proportions of individuals in low-income households have been rounded to the nearest percentage point. |
| 4. '..' means data is not available due to small sample size. |
| 5. Results cover the financial year for each year, i.e. April to March. |
| 6. Some changes between years will be small in relation to sampling variation and other sources of error and may not be statistically significant. This is relevant for particular sub-groups, as these will have smaller sample sizes than the overall survey sample size. For these sub-groups it is important to look at long-term trends. Statistical significance is not provided for these particular breakdowns. |
| 7. Households Below Average Income (HBAI) statistics assume that both partners in a couple benefit equally from the household’s income, and will therefore appear at the same position in the income distribution. Research has suggested that, particularly in low income households, the assumption with regard to income sharing is not always valid as men sometimes benefit at the expense of women from shared household income. This means that it is possible that HBAI results broken down by gender could understate differences between the two groups. |
| 8. Pensioners are defined as all those adults above State Pension age. The SPa is 65 for men born before 6th December 1953. For women born on or before 5th April 1950, SPa is 60. From 6th April 2010, the SPa for women born on or after 6th April 1950 will increase gradually between April 2010 and November 2018. Other changes are planned or have been announced from December 2018 when the State Pension age for both men and women will start to increase to reach 66 in October 2020. Further increases to bring the SPa to 67 are proposed to be phased in between 2026 and 2028. These changes are published at: https://www.gov.uk/changes-state-pension. For 2012/13 data, women are over SPa based on date of birth and date of the survey interview. For further guidance on calculating State Pension eligibility age, see: https://www.gov.uk/calculate-state-pension |