Pensions reduce old-age and household poverty, increase older people’s status and improve their family's access to basic services and employment.

They are a proven, cost-effective way of helping realise older people’s rights, including the right to development.

Pension spending by older people

Social pensions shift spending patterns. For example, in South Africa transfers increase spending on domestically produced items such as food.

Impact of social pensions on labour force participation

Households in receipt of a social pension are 2% more likely to be actively looking for, and find employment. A pension enables people in the poorest households to pay for travel costs when seeking work.

Impact on older people

"Money is very tight, but you can’t throw the children out."

Molly, 63, and her husband Elias, 72, live in Elim, South Africa. Two of their 5 daughters died of AIDS, leaving five children to be cared for by their grandparents. The pension is the main income for the household and is used for food and to send the children to primary school. As most older people live and share resources with younger family members, social pensions have have a substantial impact on child wellbeing and the achievement of MDGs 1-6.

"I started working when I was seven. I never have the chance to just go for a walk. I would like my own pension so that I can rest a bit."

Maria is 67 and lives in Rio de Janeiro, Brazil. Getting a pension would give Maria greater control over her life and enable her to age in security and with dignity.

"If I was not getting this allowance I would be dead. It has really helped me to continue to live."

Geraldine Sango is 72 and lives in Dominica. Two-thirds of older people receive no regular income, around 40% of pension income is spent on food.

"If I do not get this money I will be treated as an undesirable burden and my children will pass me from one house to another."

Bhagya is a widow of 75 living in UttarPradesh. India. Regular social pension income can increase older people’s status and help cement intergenerational relationships and obligations.

Download briefing and data