Pensioner Poverty and Gender Pay Gap
Pensioner poverty is a significant factor in causes of income inequality, particularly affecting older individuals. While the poverty rate among pensioners in the UK is relatively low at 18% compared to other groups, it is still high when compared to other countries.
Example: The UK's pensioner poverty rate is five times higher than that of the Netherlands.
This disparity is partly due to the UK state pension providing only 30% of average earnings, compared to the EU average of 70%. This significant reduction in income during retirement increases the likelihood of pensioners falling into poverty.
Gender inequality further exacerbates income disparities, particularly for women. The gender pay gap in the UK means that for every pound a man earns, a woman earns only 84p. This 16p difference per pound significantly impacts women's lifetime earnings and increases their chances of experiencing poverty, especially in retirement.
Highlight: Women face greater income inequalities than men, which can lead to higher rates of poverty, particularly in old age.
In conclusion, the causes of income and wealth inequalities in social class are multifaceted, involving educational attainment, unemployment, pensioner poverty, and gender disparities. Addressing these issues requires comprehensive policies that target education, employment, pension systems, and gender equality to reduce overall income inequality and poverty rates.
