Contribution of Old Age Allowance on Welfare of Senior Citizens in Nepal
Date
2023
Authors
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Journal ISSN
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Publisher
Department of Economics
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.
Description
Keywords
Old age allowance, Senior citizens, Government budget