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What Are The Primary Causes Of Inequalities Of Older Age? What Might This Imply For Policy?

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What are the primary causes of inequalities in older age? What might this imply for policy?
Several nations are encountering increasing pension spending, generally coupled with substantial pensioner poverty. Pensions tend to be complex and associated with an individual 's health and well-being during the latter part of their lifespan, and even throughout their working life, because they provide financial stability during retirement. Given that people are living longer, successive UK governments have continuously revised policy pertaining to social security expenditure in terms of pensions; for example, the retirement age has been raised in the past few years. However, it is clear that there has remained unbalanced wealth distribution …show more content…

There are immediate short term concerns concerning limited work-based pensions. The UK pension system does not function at peak efficiency and large numbers of workers that are not part of pension schemes are automatically registered into qualifying company pension schemes. This can present problems that will result in significant issues for hundreds of thousands of individuals if this approach remains unchanged. Within the UK, the national insurance retirement pension amount that is gained as a result of efforts throughout the individual 's working lifespan. This predicament on official retirement may be divided from the labour market, instead of about the accomplishment of post retirement years. The decision to decrease expenditure on pensions must not be allowed to affect safety nets for poor pensioners. Pensions are closely associated to prior incomes; thus, the threat is that safety-net components end up being insufficient. The goal of pensions includes poverty alleviation and consumption smoothing. In the UK, the approach to pensions as early as the mid-1980s maintains lowering the average government pension compared to the average income, depending on means-tested complements, in order to relieve poverty in older age. This strategy prevents economic difficulties, yet does so at the expense of pensioners. Qualifying for the minimum pension is based on a means test. There have generally been a significant number of pensioners with earnings less than

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