The impact of the COVID-19 pandemic on the financial situation of people aged 50+ based on SHARE data

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The COVID-19 pandemic led to the lockdown of economies, resulting in the deterioration of the financial situation of numerous households. To support economies and societies, governments implemented various measures involving job protection and financial support. This study aims to assess the changes in the financial situation of households of people aged 50+ during the pandemic. We evaluate the outcome of the introduced national policies, the EU countries’ economic performance, labor market conditions and the individual characteristics of the financial situation of the members of the examined households. To achieve this goal, an original synthetic index was constructed to measure the changes in the overall financial situation of the surveyed group of households. This index combines various indicators, including income, subjective income assessment, the use of savings to finance current consumption and the postponement of bill payments, allowing a comprehensive evaluation of the shifts in the financial status of the 50+ population during the pandemic. Additionally, the study aims to examine how the age of respondents is interlinked with the changes in their financial situation. Data from the Survey of Health, Ageing, and Retirement in Europe (SHARE), including the SHARE Corona Telephone Survey conducted during the first and the second wave of the COVID-19 pandemic were utilized for the analysis. The study's findings show that during the pandemic, the changes in the financial situation of households with people aged 50+ varied across the selected countries. Furthermore, they reveal that both the response to the consequences of the COVID-19 pandemic of a given country and its overall development level, as well as the characteristics of the respondents had a diverse impact on the financial situation and ability to cope with the economic risks faced by individuals aged 50+ during the studied period. These findings can serve as a basis for the design of targeted government interventions aiming to mitigate the negative impact of the pandemic on the material situation of this vulnerable age group.