Understanding Poverty among the Elderly in India: Implications for Social Pension Policy

Abstract

Since 1995, cash transfers to the poor elderly or ‘social pensions’ have been one of the most important anti-poverty programmes in India. On the assumption that elderly poverty rates are higher than the general population, the minimum eligibility condition is set for 60 + in most states. Our analysis using 52nd and 60th round household-level National Sample Survey data, however, suggests that households with targeted elderly members 60 + do not necessarily have higher poverty rates than non-elderly households. Further analysis suggests that there is an expenditure-mortality link so that the poor tend to die younger and are therefore under-represented among those aged 60 + in most states.