Analysis of poverty risk of older people in Spain

Abstract

Inequalities in income of the elderly population in Spain depend on various factors such as the labor market situation, the welfare state model, or alternative income sources, although, on average, the income of the population older is distributed more evenly than the rest of the population. Thus, income after retirement can be obtained from various sources; in order of importance we may emphasize public pensions, supplementary pensions, labor income or savings, among others. In general, public pensions account for about 60% of income over 65 years, although there are notable differences between the Member States of the European Union. Fostering an economy with both high employment and social and territorial cohesion are one of the three priorities of the European Union for the necessary inclusive growth. Defined as the main objective, among others, the risk of poverty should be a threat to no more than 20 million people, according to these priorities. But the strong economic and financial crisis that is currently present in the member countries makes difficult to achieve it today. We have to make an extra effort to get it. This paper analyzes the different variables that affect the risk of poverty for this social group, with the aim of achieving the necessary mechanisms that serve to prevent them. We will first describe both what are their features and this group of people, then we will try to identify what are the relationships between them and we will propose possible ways for mitigating the risk.