Why social pensions? Antonio Olmos/HelpAge International Four
out of five older people worldwide have no access to a pension.
Social pensions are non-contributory cash transfers paid
regularly to older people. They are widely acknowledged to be
one of the most effective tools to reduce old age poverty and
invest in human capital development. This statement is based on
international evidence. Income security is a concern for all age
groups, but becomes even more acute for older people. In most
African countries fewer than one in ten older people receive a
pension. At a time in their life where their capacity to earn a
living decreases, older people have no choice but to continue to
work well into old age. Additionally most older people in
developing countries have worked all their life in the informal
sector. This kind of work is often irregular and poorly paid,
meaning few have been able to save for old age. Old age poverty
Income insecurity has a significant impact on the welfare and
wellbeing of older peopl