The Role of Social Security Systems in Alleviating Poverty Among Elderly Populations: An Evaluation of Policy Effectiveness and Challenges

Abstract

With the global population ageing, social security programs are crucial for alleviating poverty among the elderly and ensuring their welfare and financial stability. This study examines the efficacy of social security policies in reducing elder poverty, focussing on their impact in both industrialised and developing nations. The research delineates variations in the design and execution of these systems worldwide by analysing secondary data from international organisations, official papers, and academic studies. The extensive social security systems in affluent countries such as Sweden, Germany, and Norway integrate earnings-related and universal pensions, resulting in significantly low poverty rates among the elderly. Conversely, emerging nations such as Ghana and India confront challenges like inadequate coverage, limited financial resources, and erratic policy execution, all of which exacerbate poverty among the elderly. The study employs a SWOT analysis to evaluate the systems' potential, risks, weaknesses, and strengths. The findings indicate that while social security programs substantially decrease poverty rates among marginalised groups, demographic factors, volatile economies, and inequitable access often compromise their efficacy. To enhance sustainability and inclusion, it is recommended to integrate social security with healthcare systems, leverage digital technologies, and foster public-private collaborations. This study underscores the need for contextually tailored, collaborative initiatives to ensure that social security institutions effectively manage the growing complexity of ageing populations.