Where are pensioners most at risk of poverty?

We’re all getting older. An inescapable fact of life, yes. But there’s also a huge demographic shift happening that means a growing percentage of the population is aged 60 and over.

In 2010, as many as one in three people in the developed world were aged over 60. As highlighted by a World Economic Forum report, nine of the 10 nations with the largest over-60 populations are in Europe. This trend is putting a strain on everyone’s finances, but also raising the risk of poverty among pensioners.

Ageing populations present unique challenges. Welfare and pension systems will have to cope with smaller workforces needing to provide for larger retired populations, while health systems will have to adapt to care for older people. Society’s attitudes towards ageing will also need to shift – a recent Yale study has even discovered that negative attitudes towards ageing could increase the chances of developing Alzheimer’s.

Given these challenges, the elderly face an increasing risk of economic and financial difficulty. Across the OECD, 12.6% of people older than 65 live in relative income poverty. And this is where the situation is at its worst:

Using data from the OECD’s Pensions at a Glance 2015 report, the chart highlights the percentage of pensioners living in relative income poverty. The situation is worst in South Korea, which returns a score of nearly 50%. This is just under 15 percentage points more than second-placed Australia.

Every country in the top 10 returns scores in excess of the OECD average, and the range of countries featured highlights that ageing is a global problem that affects nations at different stages of development.

With the first anti-ageing drug currently in development, the need to tackle poverty among the elderly is increasingly urgent. Understanding where the situation is most acute is a key step on this journey.

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Author: Joe Myers is a Digital Content Producer at Formative Content. 

Image: A resident holds the hand of a nurse at the SenVital elderly home in Kleinmachnow outside Berlin May 28, 2013. REUTERS/Thomas Peter.