Ageing and poverty: how older Portuguese adults became less poor in the noughties

The poverty rate amongst older Portuguese adults has decreased significantly in recent years as their incomes have increased and their levels of inequality and material deprivation have converged to the national average. This paper investigates whether this improved situation is homogeneous across this population group, but concludes that poverty pockets subsist. In particular, those aged 75+ and living alone record a poverty rate above 30 % in 2010, showing that this group is still subject to great economic and social vulnerability. An important feature of this income heterogeneity is the higher average income of the 65-74 age group versus the 75+ group. The evolution of both contributive and means-tested pensions has been a key element in the reduction of poverty amongst older people in Portugal and in improving their living standards. However, the austerity policies implemented post-2010 have made a strong impact on pensions and may reverse these positive developments.