Pensioners forced to ‘sell up’ as state pension ‘not enough to live on’ | Personal Finance | Finance

Many pensioners are considering “selling up”, a charity head has said, with the state pension no longer being enough to live on.

Patrick Lynch, chief executive of Catholic charity Caritas, spoke to the Jersey Evening Post about clients of pensionable age whose state pensions could not cover their Andium Homes rents.

Andium Homes is Jersey’s largest provider of affordable housing, responsible for more than 4,700 properties, housing more than 10,000 Islanders.

The Income Distribution Report, released yesterday, revealed that more than one in four (28 percent) pensioners were living in “relative low income”.

Pensioners remained the age group with the highest proportion in this bracket of relative lower income.

Mr Lynch said the report was “stark”.

Pensioners in Jersey argue it is very difficult for a lot of them to live there because the state pension isn’t keeping up with the cost of living.

Mr Lynch said: “People of pensionable age form a large proportion of the people who attend the St Vincent de Paul and other food banks.

“We have been saying for a while, along with colleagues at Salvation Army, that it’s becoming very difficult for a lot of pensioners to live here because the state pension isn’t keeping track with the cost of living.

“There are a number of people who said it makes more sense to sell up and go to the UK or France just because they can’t afford to live here. Pensions are not going nearly as far as about a year ago or three years ago.

“These members of our community are making decisions which most would agree that people in those stages of their life shouldn’t be making.

“You should be happy and content and living the way you’ve lived your whole life. That’s not fair to be making those decisions. I’m talking about people who have lived here their whole life, but now they’re moving away because it’s just not sustainable.

“You can’t ask for extra pension. There are clients who receive a state pension that doesn’t even cover their Andium rents.”

The state pension in the UK increases each year in accordance with the triple lock policy, which guarantees an increase in line with the highest of 2.5 percent, average earnings or the rate of inflation. Current high levels of inflation means this is the metric that will likely determine the increase for next year.

The current full basic state pension is £156.20 a week while the full new state pension is £203.85 a week.

Experts are predicting the rate of inflation will fall in the next few months but even if it falls to six percent, this would mean the full new state pension would increase to £216.08 a week, or around £11,236 a year, an annual increase of £636 a year.

If inflation is at eight percent in September, payments would increase by £742 a year, or with an eight percent increase, payments would go up by £848 a year.

For more information on the state pension, pensioners can visit their Government.