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The Age-Old Problem of Old Age Poverty in Portugal

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  • Carlos Farinha Rodrigues
  • Isabel Andrade

Abstract

The Portuguese elderly poverty rate has decreased significantly in recent years as elderly incomes have increased, and inequality and material deprivation levels have converged to their national levels. This paper investigates whether this improved situation is widespread across the elderly, but concludes that it is heterogeneous with poverty pockets subsisting. In particular, the elderly aged 75+ and living alone record a poverty rate above 30% in 2010, implying that this group remains one of great economic and social vulnerability. An important feature of this heterogeneity is the difference between the higher average income of the younger elderly generations versus the older ones, with more than 16% of the elderly in the two highest deciles of the income distribution in 2010. The evolution of both contributive and means-tested pensions is a key element in the reduction in elderly poverty and in the improvement in their living standards. However, the austerity policies implemented post-2010 have made a strong impact on pensions and can reverse this recent evolution.

Suggested Citation

  • Carlos Farinha Rodrigues & Isabel Andrade, 2013. "The Age-Old Problem of Old Age Poverty in Portugal," Working Papers Department of Economics 2013/27, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    • Handle: RePEc:ise:isegwp:wp272013
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Social Policy; Income Distribution; Inequality; Poverty Alleviation; Portugal;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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