A third of older people reliant on social welfare for 90% of income

A further 40% derive 50% of their income from such payments, indicating that the demographic is heavily dependent on public schemes such as the State pension, together with supports such as the medical card and free travel pass, for survival.

The report, the second produced by advocacy group Age Action in its ‘State of Aging’ series, says a quarter of workers have no occupational or personal pension income when they reach their 60s.

It shows “just how reliant we are on the state social protection system for our incomes in older age”, said Celine Clarke, Age Action’s head of advocacy and public affairs.

Ms Clarke said that the report shows that “poverty, deprivation, and income inadequacy are facts of life for many of us who rely on the State pension” which, she pointed out, is the “second-lowest level of income replacement in the EU”.

She said Ireland’s pension system is “highly reliant on home ownership”, which negates the need for weekly supplementary payments in older age.

However, last year’s Census indicates that the number of renters in Ireland doubled in the years since 2016, with nearly 10% of those aged between 50 and 64 still renting as of 2022.

“We know that the proportion of people who are renting in the private rental sector in older age will increase, indicating that many of us could be relying on the State to support our housing needs in older age,” Ms Clarke said.

Meanwhile, while welfare payments keep many people out of poverty, that income is not sufficient to aid recipients when it comes to one-off costs such as health payments, according to the report.

“Often these are large one-off sums that older people cannot cover with their modest weekly incomes, which causes significant distress and anxiety,” the report states.

The survey, which was conducted among respondents aged from 63 to 95, found that 20% of older couples and 40% of older people living alone could not cope with a once-off expense of more than €1,200.

This means that many older people will deprive themselves of “basics” such as heating or socialising in order to prepare for the “next big expense” which they believe is coming, said Dr Nat O’Connor, policy specialist with Age Action.

While the State pension is the bedrock of income in older age, many people still struggle to live on it, especially when dealing with new and emerging costs associated with older age.

Age Action will be calling for a “comprehensive cost-of-ageing study... to strengthen social protection and public service planning, so they are made adequate and sustainable into the future”, Ms Clarke said.