Why the number of poor retirees is likely to rise again in the coming years

The association Little Brothers of the Poor is sounding the alarm. The number of retirees below the poverty line continues to grow and this increase is expected to continue, or even increase.

“A society which risks becoming a factory of old poor people.” It is in these terms that Little Brothers of the Poor warns about the current economic situation of retirees. In its annual report on older people, published this Monday, September 30, the association estimates approximately two million people aged 60 and over who live below the poverty line, set at 1,216 euros per month for a single person. But it is the constant increase in this figure, for several years, which still alarms the association. While for a long time, the proportion of poor retirees was around 8%, since 2015 it has continued to climb. “to reach 11% today and up to 18% for seniors living alone”points out the report.

Worse, the association fears that the situation will continue to deteriorate in the years to come. And mainly for elderly people living alone, whose poverty rate is higher than the general population. “In light of the ongoing weakening of the professional and social situations of working people, the increase in poverty among the elderly is likely to increase sharply in the future”alerts the association. And it is by looking at the “younger” side that we understand why the situation is not expected to improve in the coming years. Thus, the poverty rate among 50-64 year olds increased from 10% in 2008 to 12% in 2022. However, with age, there is a risk of persistence of poverty, which, contrary to the trend of recent decades, would no longer make it possible to reduce the poverty rate among the oldest.

Hit hard by inflation

Among the reasons for this increase in poverty, the report highlights inflation which has particularly affected the poorest and oldest households. The report cites the French Observatory of Economic Conditions (OFCE) which estimates that “a household whose reference person is over 65 years old experiences an inflation rate 0.6 points higher than average inflation”. And on the side of future retirees, Little Brothers of the Poor notes that the latest reform of the RSA which conditions its payment on 15 to 20 hours of activity per week or the reform of unemployment insurance, which reduced the maximum duration of he compensation for seniors aged 55 and over 36 to 27 months, may be factors leading to a greater number of people in poverty.

To stop the worsening of the situation, the association recommends in particular revaluing the Solidarity Allowance for the Elderly (Aspa, ex-minimum old age) which still remains below the poverty line. In 2024, its amount rises to 1,012 euros for a single person and 1,571 euros for a couple. “In 2024, the minimum old age is 16.8% lower than the poverty threshold for a single person, i.e. a differential of 204 euros and 14% for a couple without children, i.e. a differential of 254 euros”calculates the ratio. The Little Brothers of the Poor also suggest to index to the poverty line the ceilings for granting complementary solidarity health insurance with financial participation or even improving the transition between the RSA and the payment of retirement.