Poverty in old age

In Africa and Latin America, older people are more likely to be living in absolute poverty than the population as a whole. The proportion of older people living on less than US$1 per day is highest in Sub-Saharan Africa (47%). 

Percentage of people aged 60 and over living on less than US$1 a day

The absolute number of older people living on less than a US$1 a day is highest in Asia (55 million people).

Number of people aged 60 and over living on less than US$1 a day

Older people have a right to age with dignity. But living on less than US$1 a day denies them this right. They cannot afford an adequate standard of living, such as access to good healthcare, decent housing and nutritional food.

In southern Africa more than half of orphans live with their grandparents, which means that the household income has to stretch even further. Many older people cannot afford to pay for their grandchildren's education.

Older people at work

More than 70% of older men and around 40% of older women in the least developed countries are economically active, mainly in the informal sector and often running their own businesses.

Percentage of people aged 60 and over in the labour force

In addition many older people take on unpaid work within the family in agriculture, security, caring for children and maintaining the house.

This work, particularly when undertaken by older women, is unpaid and undervalued. In communities severely affected by HIV and AIDS for example, over half of older people are bringing up vulnerable children. Read Chheut's story

In camps for internally displaced people in Sudan, 30% of older people have dependent children. Financial or emotional support for the caring role played by older people is virtually non-existent.

Many older people in developing countries have manual jobs – they survive by selling their labour. If they are ill or cannot find work they don’t get paid and this can result in loss of material goods, savings, home and eventually lead to death.

Pensions

While many older people want the option to continue working they also want income security in the form of a regular cash transfer or social pension. As well as enabling older people to pay bills and buy food, pensions help people find jobs and provide independence, status and dignity.

Pension Watch gives more information on cost, coverage, feasibility and impact of pensions.

Poor older people do not have the option to retire as few have access to regular income or pensions. However, there is growing recognition that pensions are feasible and that they reduce old-age and household poverty, increase older people’s status and improve the 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.

Globally, 72 countries have some form of social (non-contributory) pension. 46 of these are low or middle-income countries.

In a recent survey of 17 low and middle-income countries with non-contributory pensions, HelpAge International estimated that 24.3 million (17%) people over 60 receive a social pension.

83% of people in these countries do not receive anything because social pensions are means-tested or the age limit is set too high.

Regional figures are only available for Latin America where on average 4 in 10 people over 70 receive some type of pension. The International Labour Organization estimates that 80% older people in developing countries have no regular source of income.

Percentage of older people receiving income from retirement or pension