TIL BDR GHALLEY | Thimphu
Nearly four in 10 elderly Bhutanese face economic insecurity despite not being classified as poor under conventional poverty measures, according to a new study by the National Statistics Bureau (NSB).
The report “Economic Security Among Elderly Persons in Bhutan: A Multidimensional Analysis of Poverty, Consumption, Income and Social Support” found that 12.8 percent of people aged 60 years and above were poor based on household consumption levels, while 38.8 percent experienced economic insecurity when broader factors including health, housing, material wellbeing and social support were considered.
The study found that monetary poverty alone does not capture the full extent of challenges faced by elderly persons, many of whom continue to experience deprivation despite being above the official poverty threshold.
Based on data from the Bhutan Living Standards Survey (BLSS) 2022, the study provides the first nationally representative assessment of elderly economic security in Bhutan using a multidimensional approach.
The report comes as Bhutan undergoes a demographic shift, with the proportion of elderly persons projected to rise from 8.8 percent of the population in 2017 to 19.7 percent by 2047, driven by increasing life expectancy and declining fertility.
The study assessed economic security across four dimensions such as economic resources, material well-being, health and social support.
It found that only 14.9 percent of elderly persons were secure across all measured dimensions. Around 46.3 percent were classified as vulnerable after experiencing deprivation in one dimension, while 35.4 percent were economically insecure and 3.4 percent were severely insecure, facing deprivation in two or more areas.
The report pointed out that household-level poverty estimates may not fully reflect the circumstances of elderly persons, particularly those living alone or in households where resources are not equally shared.
Household wealth was identified as the strongest factor associated with elderly economic security. The analysis found that elderly persons living in the richest wealth quintile had a 30.2 percentage point lower probability of being poor compared with those in the poorest quintile. They also recorded per-capita consumption levels about 156 percent higher than elderly persons living in the poorest households.
The report found that education was another important factor influencing economic well-being. Elderly persons from households where members had tertiary education were 26.1 percentage points less likely to experience multidimensional economic insecurity compared with those from households with no formal education. Tertiary education was also associated with a 38.6 percent increase in household consumption.
The study found significant differences between urban and rural areas. Elderly persons living in urban areas were 15.1 percentage points less likely to experience multidimensional insecurity and recorded 28.7 percent higher household consumption compared with those living in rural areas.
The report noted that 81.6 percent of elderly persons lived in rural areas, where access to economic opportunities, services and infrastructure remains more limited.
The eastern region recorded the highest concentration of elderly persons in the poorest wealth group, with 29.3 percent belonging to the lowest wealth quintile. Western and central regions recorded larger shares of elderly persons in the richest wealth category.
The findings indicate that geographical location remains an important factor influencing household resources and economic security among older persons.
Nearly half of elderly households, 46.9 percent, depended on a single source of income, while only 11.9 percent reported having three or more sources of income.
Households with diversified income sources generally recorded higher consumption levels. However, the study found that income diversification alone did not significantly reduce multidimensional economic insecurity after accounting for other household characteristics.
The report said additional income sources may help reduce monetary poverty and improve consumption but may not address challenges related to healthcare, housing conditions and social support.
It found that elderly households receiving remittances were associated with higher poverty rates and lower consumption levels.
The report found that this could indicate that remittances are primarily supporting households already facing economic difficulties rather than serving as a pathway out of poverty.
The study found that only 3 percent of elderly persons lived alone. While living alone was associated with lower poverty risk under certain measures, elderly persons living alone recorded lower consumption levels compared with those living with other household members.
Larger households showed mixed outcomes. They were associated with higher poverty risk due to greater consumption needs but were also linked with lower multidimensional insecurity, suggesting that family arrangements may provide elderly persons with care and social support.
With Bhutan’s elderly population expected to nearly double in the coming decades, the report calls for broader approaches to assessing and addressing vulnerability beyond traditional poverty indicators.
The report recommended incorporating multidimensional indicators into social assistance programmes, strengthening asset accumulation during working years, expanding pension coverage, improving rural infrastructure and supporting community-based services that enable
older persons to age in place.
The study provides baseline evidence on the economic conditions of Bhutan’s elderly population as the country prepares for a larger ageing population and changing household structures.
