The problem of poverty in old age

The forces responsible for poverty in old age in industrializing societies are demographic, economic, and social. The long-run decline in both death rates and birth rates results in a rising proportion of elderly persons in the population. Changes in technology and in the occupational structure of the labor force tend to place older people at a disadvantage in competing for available jobs, to bring on earlier retirement, and to render the transition from full-time work to retirement a more disrupting and abrupt process for the average worker. Finally, although it has frequently been suggested that the increase in geographical mobility and the process of urbanization have tended to weaken family ties, sociological studies have shown that, in fact, most elderly people live near to and have frequent contact with at least one adult child (e.g., Shanas et al., 1968).

Basic to an understanding of the problem of poverty in old age is the fact that it does not suddenly appear at age 65, or at some more or less arbitrarily determined age. Associated as it is with declining job opportunities, it may appear well before age 65, or not until some years later. Declining job opportunities tend to be attributable to chronic illness or disability, reluctance of employers to hire older job seekers, or the desire of employers to replace older workers with young people who have had more recent education or training.