Short Abstract:

he dissolution of traditional extended families in India is led to rising economic inequality, urbanization, modernization, growing individualism, and a greater emphasis on consumption. The rise in nuclear families and longer life expectancies has led to an increase in the cost of caring for the old, which puts older people at greater risk of experiencing disadvantages or falling into poverty.

Long Abstract:

Background: As the number of older people in India's population continues to rise, it is becoming more and more important to improve their economic stability. Factors like migration from rural to urban areas and the shifting labor force distribution across different economic sectors also have an impact on this requirement. When it comes to determining health choices and providing financial support for healthcare, the traditional family structure is crucial. A vital factor in guaranteeing the financial security of the elderly is the involvement of family members in the workforce. The dissolution of traditional extended families in India is closely related to the above-described issues, which also lead to rising economic inequality, urbanization, modernization, growing individualism, and a greater emphasis on consumption. The rise in nuclear families and longer life expectancies has led to an increase in the cost of caring for the old, which puts older people at greater risk of experiencing disadvantages or falling into poverty.

The purpose of this study is to examine the demographic segment that depends on family members for financial support. It also looks at how the aging population prefers to stay healthy and how they use money to pay for medical care.

Methodology: The research uses information gathered from 72,250 people 45 years of age and older during the 2017–2019 Longitudinal Ageing Study in India (LASI). The early and late aging population and older individuals make up the two main cohorts into which the data is divided. The latter specifically addresses the 31,646 senior population, which consists of 16,366 senior women and 15,098 senior men.

Results: The data point to a significant gap in the economy's coverage of financial security. In particular, one out of every five senior citizens is enrolled in an organized sector pension plan. Notably, a sizable share (20.65%) of the aged population is covered by federal and state pension programs. In contrast, only a small percentage of India's old population (2.1%) is covered by private pension systems, especially employer-funded pension schemes. Just 7% of senior citizens believe their family's financial situation is adequate, whereas 53% say they are middle class.