Income, Wealth and Poverty

• STATISTICS:

  • Estimates of 3.5 million children living in poverty in the UK. In 63% of these families, at least one parent works.
  • Giddens has shown how pensioners are 2.5% more likely to be in poverty compared to those who work.
  • The Government's National Inequality Panel - showed that age-related net incomes now have a “crown” shape. Meaning that earnings rise during people's twenties and thirties. With their earnings peaking at around age 40 and then declining onwards. However, wealth continues to grow because it includes housing, investments etc.
• Which 3 sociologists give reasons for age inequalities within poverty?

  1. Vincent - those who don't have additional pensions (private + state pensions) are more likely to suffer. Inequalities from the last age groups become magnified
  2. Larkin - adds that elderly women are likely to live in poverty as there is an expectation for women to look after the home, their husbands and wider family
  3. Milne & Harding - the “two worlds” of the elderly, they distinguish these “worlds” between the “active elderly” and the poorer less healthy and more isolated older group.
• What reason does Vincent give for why the elderly are more likely to be in poverty?


  There are higher rates of poverty among the elderly because some people don't have additional pensions (private + state pensions). This is due to the last inequalities of earlier age groups becoming magnified among the elderly. The magnification can also be seen in terms of ethnicity and gender.
• What reason did Larkin add to Vincent's which further supported the reasons why the elderly are more likely to be in poverty?


  Adds that elderly women are more likely to live in poverty as there is an expectation for women to look after the home, their husbands and wider family. This results in older women being more likely to have to work part-time or not at all, leading to them not having pensions / saving money throughout their lifetimes. (example of how previous inequalities are magnified in old age)
• What reason do Milne & Harding give for why the elderly are more likely to be in poverty?


  There are huge discrepancies (differences) in the standard of living within the elderly "community". This means that for some (those who have paid off their mortgages and have had their private pensions mature) elderly age can be a time of great comfort/ prosperity. While others may suffer in poverty and loneliness. Milne & Harding describe this as the “two worlds” of the elderly, they distinguish these “worlds” between the “active elderly” and the poorer less healthy and more isolated older group.
• The Chartered Institute of Housing (reasons for age inequalities around income) - added to Davidson's point acknowledging that it is becoming increasingly difficult for the young to buy their own home. On average 66% of 25-34 year olds owned their own home however this has fallen in 2013 by 36%. In comparison 65-74 year olds who own their home has risen from 62% to 77%.
• • Willetts (reasons for age inequalities around income) - provided evidence that “baby boomers” (the generation born between 1945 and 1965). enjoy a disproportionate amount of welfare state benefits.
  • Baby boomers take out £6 for every £5 they have paid in.
  • They enjoyed free university education, unlike the present generations.
  • They retired at 60 for women and 65 for men, whereas the present generation will work until 68.
• Davidson (reasons for age inequality within Incomes) - even the young who have managed to buy property in their 20s are often “equity rich but income poor”. Meaning they have a home but they spend a significant amount of their monthly income on mortgage repayments.