Unequal Gains: Demographic Determinants of Domain-Specific Financial Insecurity in the Global South

Despite rapid economic expansion and increased financial inclusion across the Global South, substantial disparities in financial security persist. This study examines the demographic determinants of domain-specific financial insecurity in 63 emerging and developing economies, drawing on data from 56,978 individuals. Financial insecurity is assessed across four life domains (old-age preparedness, medical expense affordability, ability to meet monthly obligations, and education costs), using positively oriented worry-based indicators from the Global Findex 2021 survey. Using ordinal probit regression and modeling each domain separately, we identify a U-shaped age profile of financial insecurity, with vulnerability peaking in midlife before declining in later adulthood. Women, individuals with lower education and income, and rural residents consistently face higher levels of financial insecurity across all domains, with particularly pronounced disadvantages in South Asia and Sub-Saharan Africa. To account for institutional context, we further incorporate a country-level measure of social protection coverage from the World Bank’s ASPIRE database in supplementary analyses. Our findings indicate that higher social protection coverage is associated with lower financial insecurity in selected domains and attenuates gender disparities in financial vulnerability, highlighting the role of institutional buffering. By disaggregating financial insecurity into distinct life domains and situating demographic disparities within broader institutional contexts, this study provides policy-relevant evidence on where and among whom financial vulnerability is most acute. Our findings reveal the importance of strengthening social protection systems alongside demographic targeting to advance inclusive financial security and progress toward the Sustainable Development Goals (SDGs).