Senior poverty refers to the percentage of older adults living below the poverty line.
The Economist Intelligence Unit (EIU) published a report in 2020 titled “Shifting Demographics: A global study on creating inclusive environments for ageing populations,“ and the results are daunting. For example, in South Korea, 43.8 percent of adults aged 66 and above are living below the poverty line. That means nearly half of South Korea’s senior citizens struggle to get by.
In the United States and in Australia, over 23 percent of the people in the corresponding age group live below the poverty line. The table above from the EIU article shows that these percentages for older adults are significantly higher than the national poverty rates.
Anju Patwardhan wrote a LinkedIn post on this topic in 2022.
Squid Game, a popular Korean TV show, illustrates the issue well. The Korean TV series made history in 2022, winning six Emmy awards. The survivalist drama is about a competition among 456 indebted participants pitted against one another for a cash prize of $40 million. Losers face instant death.
In his acceptance speech, the leading man and best actor winner, Lee Jung-Jae, said that the show made “realistic problems we all face come to life.” Obliquely, he was referring to the extreme steps people will take to alleviate poverty. Even though the show’s premise is fictional, the problem is real, and it is much worse for older adults in the 65+ age group, as seen in the EIU data.
The senior poverty numbers for the Nordics and countries like France and Germany are lower and potentially reflect the strong social support systems.
Singapore and Japan have the fastest ageing populations in the world, and the financial well-being of older adults will be a massive challenge unless structural changes continue to be made to provide ongoing support to an increasing percentage of older adults.
In most countries, the policies mandating retirement age have not kept pace with the increased lifespan, and people continue to retire between the age of 60 to 65. It is not easy to support a 30 or 40-year retirement with savings from a 40-year career. This has resulted in financial insecurity among potential retirees. In addition, the widespread issue of inadequate or nonexistent pension schemes in many countries has compounded the problem.
Addressing senior poverty and ensuring the financial well-being of older adults is critical. Some older adults elect to work longer, while others have no choice but to support themselves and their families. While many older adults may want to continue working full-time, part-time, or in flexible jobs to support themselves financially, age discrimination in the job market and the bias against older workers add to the struggle to find a source of income in later life.
To ensure financial health and security, more must be done to reduce ageism at work and provide age-appropriate economic opportunities.