Contribution of Old Age Allowance on Welfare of Senior Citizens in Nepal

Abstract

Social safety nets are the initiatives that assist the most vulnerable and underprivileged people in avoiding extreme poverty. Various social safety nets currently provided in Nepal are in-cash and in-kind services to senior citizens, Dalit community, and unmarried women above age 60, divorced women above 60, widow of all age, people with disability and for child care. This study attempts to analyze the utilization of old age allowances (OAA) by the beneficiaries and its contributions on their welfare. In order to fulfill the objective of the study, primary data were collected in Namobuddha Municipality of Kavrepalanchowk district, Nepal using structured questionnaire. Kavrepalanchowk, which lies in central Nepal was purposively selected as a representative district of Nepal in terms of ethnic diversity and rural-urban balance required for this purpose. A total of 120 senior citizens were interviewed. Simple descriptive statistics such as arithmetic mean, ratio and percentage have been used in the analysis while the findings has been interpreted through tables, graphs, t-test and chi-squared test using Microsoft excel and R software.

This study showed that the percent of OAA the senior citizens spend on food and medicines were 30% and 17% respectively. With the help of OAA, majority of the respondents are able to meet their medical expenses, eat supplementary food, use their own pocket money and participate in religious activities. Otherwise 24% respondents and 39% respondents wouldn't be able to fulfill their basic food requirements and be able to spend for their health care respectively. This study showed that 76% respondents are not engaged in any economic activities and living their retired life utilizing OAA. Around 82% respondents have been financially independent and 55% respondents felt that they have gained better respect in the family after receiving OAA. The chi-squared test shows that there is uniformity in spending patterns among different ethnic groups but the individuals living alone has allocated their expenditure differently than those who are living with family or a spouse. This study shows that with the availability of old age allowances, senior citizens have been self-sufficient and live their life with respect, care, dignity and protection. Hence, this type of allowances should be continued in future and make more convenience and systematic in order to provide minimal level of protection and to increase the welfare of the senior citizens.