HelpAge International is calling for a universal social pension for all people over 60 years of age in order to:

Realise older people’s rights

Social (non-contributory) pensions are a valuable and strategic element of a minimum social security package that supports the realisation of rights, via implementation of the right to social security for all and furthering state provision of social protection for vulnerable people. Social pensions support commitments made by governments in the Madrid International Plan of Action on Ageing 2002 to halve the numbers of older people living in extreme poverty by 2015. They also make important contributions to older people’s empowerment and ability to claim other rights for themselves and their dependants.

Reduce poverty

Social pensions are an effective way of reducing income poverty and other forms of poverty among older people. The numbers of the older poor in developing countries are increasing and older people are over-represented among chronically poor people. Two-thirds of older people receive no regular income and 100 million live on less than US$1 a day. Regular cash transfers also increase poor older people’s access to services, particularly health care.

As most older people live and share resources with younger family members,social pensions have a substantial impact on child wellbeing and the achievement of MDGs 1-6. Social pensions contribute to increased school attendance and better nutrition among children. They can play an important role in breaking intergenerational poverty cycles. Rather than creating dependency, social pensions can actually reduce it.

Tackle HIV and AIDS

In addition to reducing demands on older carers, social pensions help HIV positive people access treatment, which strengthens livelihoods and reduces levels of orphaning. They also improve the life chances of extremely vulnerable children.

Effectively support the most vulnerable

Social pensions are an underused policy instrument for achieving just and more equitable societies for all ages. Their vital role as part of anti poverty policy needs to be recognised.

Social pensions are affordable. Depending on the size of the transfer and the number of the eligible population, costs range from 0.03 to 2 per cent of GDP. Most existing schemes are fully nationally financed, but fuller coverage can be achieved with a mix of national and donor financing. Political will and predictable and long-term financing are needed. Strong community based accountability mechanisms can ensure that resources are delivered efficiently and well-used.

Universal pensions are generally simpler and less costly to administer than meanstested pensions, and less prone to corruption and discrimination in their distribution.