CHAPTER.5 PENSION, SOCIAL SECURITY SCHEMES AND THE ELDERLY

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1 174 CHAPTER.5 PENSION, SOCIAL SECURITY SCHEMES AND THE ELDERLY 5.1. Introduction In the previous chapter we discussed the living arrangements of the elderly and analysed the support received by the elderly in family setting. The gradual collapse of traditional old age support mechanism and the rise in elderly population highlighted the need for appropriate formal channels (Goswami, 2001). In this context of reducing family support, the responsibility of the state to ensure the welfare of older persons increases. Hence in this chapter an attempt is made to analyse the old age income security provided by government to elderly in the form of pension for those in the organized sector and social security benefits for those in the unorganized sector. The term social security refers to programmes established by state that insure individuals against interruption or loss of earning power (International Social Security Association, 2003). The main function of social security is to provide income security, access to health care and basic social services and thus reducing poverty among the elderly (American Institute of Certified Public Accountants, 2005). International Labour Organisation (2006) defines social security as the set of institutions, measures, right and obligations whose primary goal is to provide income security and medical care to individual members of the society. Unlike developing countries India do not have a universal pension system. There is no comprehensive social security system in India as a whole (Rajan et al, 1999). Pension policy adopted by the country is restricted to the workers in organised sectors leaving 90 percent of the workers in the unorganized sector. Kerala is known for its widespread and popular social security schemes especially for the aged. At present the state is having four lakh pensioners and 12 lakh social security beneficiaries (Government of India, 2008). They constitute about half of the elderly (49 percent) in the state. Early retirement age along with increasing longevity in the state has triggered problems for elderly

2 175 employed in formal sector. Though the policy holders raised the problem of state s affordability in providing social security benefits to the growing elderly population, how far these schemes are efficient in providing support to the elderly is also a matter of concern. The first section analyses the utilization pattern of pension and social security benefits and its adequacy in meeting the needs of elderly. The nature of social security beneficiaries and the pensioners cannot be pooled always due to the heterogeneous behaviour. Thus the preceding paragraphs flow at three levels. Firstly the discussion is only on social security beneficiaries. In continuation of that the pensioners are discussed. Final part of this section gives presentation covering both social security beneficiaries and pensioners. The second section examines the impact of these schemes on elderly s participation in decision-making and life satisfaction Social Security Benefits and its Impact From its formation, Kerala gave more prominence to social security measures. In 1980 s there was a proliferation of social security schemes for older persons in various categories. At present the state Kerala is having 40 social security schemes for ensuring income security for aged in the unorganized sectors. These schemes are implemented either directly through government departments or welfare boards. The major schemes financed fully by the state are Kerala Agricultural workers pension scheme, Kerala Destitute and widow pension scheme, old age pension to craftsmen and journalist welfare fund scheme. The schemes that are financed partly with state s support include Kerala construction workers welfare fund, Kerala fishermen welfare fund scheme and Kerala khadi workers welfare fund. The schemes that are financed by respective boards include Kerala headload workers welfare fund, Kerala toddy workers welfare fund and Kerala abkari workers welfare fund. The study also made an attempt to examine the extent of pension and social security reaching the elderly and its utilization pattern. During the course of the survey it was felt that, the elderly are getting only nominal amount as social security benefit and the benefit itself is not suitable for any major activities or

3 176 upliftment. The social security benefits enjoyed can be linked with other sources of income and can be utilized for some useful purpose. The succeeding paragraphs and tables present the utilisation of pension and social security benefits and its impact on elderly s life Classification of Social Security Beneficiaries on the Basis of Schemes Table (5.1) shows the classification of beneficiaries on the basis of social security schemes. Table 5.1 Distribution of Beneficiaries According to their Participation in Schemes Schemes Male Female Agricultural labour 19(52.78) 41(37.96) 60(41.67) pension National old age pension 12(33.33) 21(19.44) 33(22.92) Widow pension scheme 0 39(36.12) 39(27.08) Others 5(13.89) 7(6.48) 12(8.33) 36(100) 108(100) 144(100) Figures in the brackets show percentages Among the various schemes, majority of the beneficiaries (41.66 percent) were receiving agricultural labour pension percent of beneficiaries were benefited from National old age pension scheme. The trend is similar to the pattern experienced in the state. Nearly 21 percent of pension scheme beneficiaries in the state were from National old age pension scheme (Economic review, 2009) percent were receiving widow pension. The category others include schemes like construction workers welfare pension, unmarried women above 50 and tailoring workers welfare fund percent of the sample beneficiaries are from the schemes mentioned in the category others. Gender-wise distribution of beneficiaries in table (5.1) shows that 75 percent of social security beneficiaries were women. Presence of widow pension scheme along with higher life expectancy among women may be the reason for this female domination. Even in the case of agricultural pension scheme and old age pension scheme more than 60 percent were older women.

4 Source of Awareness of the Scheme Awareness to the beneficiary about a social security scheme is necessary for achieving its objectives. During the survey, elderly were asked about the source of awareness of the scheme. Since government servants will be enrolled to the pension scheme after retirement, we enquired about the details of source of awareness to social security beneficiaries only. Table (5.2) shows the source of awareness of the schemes in the study regions. Table 5.2 Distribution of Beneficiaries on the Basis of Source of Awareness of the Scheme Source Male Female Local leaders 7(19.45) 33(30.56) 40(27.78) Panchayat office 17(47.22) 44(40.74) 61(42.36) Friends or relatives 8(22.22) 15(13.89) 23(15.97) Others 4(11.11) 16(14.81) 20(13.89) 36(100) 108(100) 144(100) Figures in the brackets show percentages Nearly 43 percent got information about the schemes from the panchayat. It is found that percent of elderly were informed by ward members or local leaders. Trade unions and Kudumbashree members informed percent of elderly. Older women got information about the scheme from local leaders than older men. It is also noted that most of the beneficiaries do not remember the type of scheme they were enrolled Purpose of Using Social Security Amount Table (5.3) shows the major purpose for which they are utilizing social security benefits Analyzing the purpose of using social security benefits, it is found that majority of them (41.67 percent) use their money for meeting basic needs like food, clothing etc percent of elderly reported that the amount is just sufficient to buy medicines only percent of elderly use their amount for their personal needs only. It is found that older women were more likely to give their pension amount to spouse or children than men. Further, older women who

5 178 are widowed gave the pension amount as loan for others. Though the amount is meager, it provides them income in the form of interest. Table 5.3 Distribution of Beneficiaries on the Basis of the Purpose of Using Money Purpose Male Female Basic needs 15(41.67) 45(41.67) 60(41.67) Loan payments 4(11.11) 7(6.48) 11(7.64) Gave to husband or 4(11.11) 17(15.74) 21(14.58) children Medicines 4(11.11) 13(12.04) 17(11.81) Own needs 7(19.45) 19(17.59) 26(18.06) Other reasons 2(5.56) 7(6.48) 9(6.25) 36(100) 108(100) 144(100) Figures in the brackets show percentages Managing Expenditure by Social Security Beneficiaries Elderly were asked whether the social security benefit is sufficient for them to meet their needs. Though many of them reported social security benefits received as their main source of income, no single beneficiary reported the amount is sufficient for their needs. Thus the rationality of continuation of present meager amount is a matter of policy concern. Table 5.4 Sex wise distribution of Financial Support Managing expenditure Male Female From work 8(22.22) 31(28.70) 39(27.08) Assistance from children 21(58.33) 56(51.85) 77(53.47) Borrow from relatives 7(19.45) 19(17.59) 26(18.06) Help from charitable 0 2(1.85) 2(1.39) institutions 36(100) 108(100) 144(100) Figures in the brackets show percentages

6 percent of elderly reported that they are getting assistance from children for their basic needs percent of elderly work even at this old age in order to meet their expenses percent reported that they borrow from relatives or friends for their expense. This suggests that children provide a major source of support for elderly. Similar trend is observed in the case of gender-wise data also. Further it is observed that as age increases, the dependence of elderly on economic activity decreases while their dependence on children increases. Another shock is that the proportion of who rely on borrowing (who borrow money for their basic needs) has increased from percent in the age group 60+ to percent at the age of 80 and above. Deteriorating physical condition may force them to rely on borrowing and seek help from others. They also point out irregular and delayed payments also force them to borrow from others Basic Profile of Pensioners The sample consists of 169 pensioners from three study regions. Of which 84 are older women and 85 older men. Though the work participation rate of females is low in the state, the sample constitutes almost equal number of older men and women. Because of higher life expectancy of females, there is more chance for the sample selected to be women as they get aged. Among the total pensioners, 84 percent of the pensioners were receiving service pension and percent family pensioners. Compared to state trends (19 percent) family pensioners constitute lesser proportion in the total sample pensioners. There is preponderance of older men (97.6 percent) in the category of service pensioners. In the case of older women, 70.2 percent were service pensioners and 27.4 percent family pensioners. 2.4 percent of the elderly in the study area were receiving Employees Provident Fund Spending Pattern of Pensioners For percent of pensioners retirement pension is the only source of income. Majority (77.51 percent) of pensioners spent major portion of their income for household needs, i.e, using money for the welfare of family percent of elderly gave their pension amount to spouse or children. 80 percent of these respondents are older women. Increasing disabilities along high cost of

7 180 medical expenses made 3.55 percent of elderly use their pension amount for medical purposes. It is observed that though pensioners are having regular and relatively reasonable income than social security beneficiaries they spent only a small portion of income for their personal needs Sufficiency of Pension Amount Retirement pension amount provided to elderly by government is an indicator of self-reliance. Elderly experience a greater reduction in income after retirement while their expenditure remains more or less the same. Older persons were enquired about the sufficiency of pension amount. Table 5.5 Gender wise distribution of pensioners on the basis of income sufficiency Sufficiency of pension amount Male Female Enough to meet 29(34.12) 44(52.38) 73(43.20) Sometimes find difficult 45(52.94) 32(38.10) 77(45.56) Never 11(12.94) 8(9.52) 19(11.24) Figures in the brackets show percentages 85(100) 84(100) 169(100) 67 percent of elderly found difficult to meet their expenses occasionally or always. The proportion of elderly who find difficult to meet their expenditure regularly in urban areas (16.67 percent) is two times more than in rural areas (8.26 percent). This may be because of the high cost of living in urban areas. Compared to women pensioners (9.52 percent), greater proportion of older men (12.94 percent) reported that they were not able to meet their expenditure with current pension. This is because in most case female pensioner s income will be supplemented with husband s or children s income. It is noted that among female pensioners who reported inadequate income, a few were widowed or divorced. The survey results in table (5.5) indicate that the entire needs of elderly have not been able to meet with their pension amount. A little less than half of pensioners (48.96 percent) reported that they seek children s help to meet their needs percent depends on savings for their needs percent who do not

8 Housing Debt payment Children s expense Household expenses medical expense Save others 181 have the support from children or other family members borrows from others. Compared to male pensioners (58.93 percent), female pensioners (75 percent) depend on children s help or borrowings to meet their expenditure Amount Received at the Time of Retirement and its Utilization Pattern Elderly working in the organized sector are eligible for retirement benefits. These benefits provide them financial independence and a sense of security. Table (5.6) shows the amount received by elderly at the time of retirement and the purpose of spending. Table 5.6 Distribution of Pensioners on the Basis of Retirement Amount and its Utilization Retirement amount Less than 1 lakh 1lakh- 4lakh 4lakh- 8lakh 8lakh & above Don t remember 5(20.84) 15(62.50) 2(8.33) 3 (42.86) ) 1 (14.28) 25 (44.64) 26 (46.43) 5 (8.93) 4(40) 1(10) 3 (50) 3 (50) 0 0 2(8.33) (19.23) 17 (65.38) 2 (7.69) 2 (7.69) (50) (50) 0 45 (33.83) 67 (50.37) 10 (5.91) 0 4(3) 2 (50) 4 (100) 7 (5.26) 133 (100) (100) 10(100) (100) (100) (100) (100) Figures in the brackets show percentages Of the total sample, percent of elderly who worked in private institutions or included in the category of family pensioners did not receive any retirement benefits. Among the 133 older persons, percent of elderly received up to Rs.1lakh as retirement benefits percent of elderly received an amount between Rs.1lakh and Rs.4lakh after retirement as gratuity, provident fund etc. The survey data show that percent has utilized the amount for daughter s marriage or to buy assets for son percent of elderly spent the amount to buy house or for the maintenance of house percent of elderly reported that they saved the money for children s marriage and for their future needs. This shows that majority of elderly spent the amount for the welfare of

9 182 family rather than their personal needs. Gender-wise analysis of data shows that there is no significant difference in the utilization of retirement amount. The proportion of older men with higher retirement benefits is greater compared to older women. This may be due to gender differences in the occupational pattern. It is also noted that percent of older women were receiving family pension. The proportion of older men with no retirement benefits was 2.35 percent Dependency Burden of Pensioners Usually policy makers concentrate on dependency of elderly on younger generations. There are a few cases where family members depend on elderly s pension for their needs. Table 5.7 Distribution of Pensioners on the Basis of Dependents No: of dependents One 38 (60.32) 23 (36.51) 2 (3.17) 63(100) Two 18 (72) 6(24) 1(4) 25(100) Three 2 (66.67) 1(33.33) 0 3(100) 58 (63.74) 30 (32.97) 3(3.29) 91(100) Figures in the bracket show percentages From the given data, it is found that percent of pensioners have at least one dependent. Among the elderly with dependent population, percent are having only one dependent child and percent of elderly are having two children dependent on them. The dependency of younger generation on elderly is found to be declining with age. We enquired the reasons for this dependence percent reported that though their children are employed, they also have to contribute their pension for family expenses. For 54 percent of elderly, pension amount constitutes sole income of family since their children are unemployed percent reported that they are forced to provide assistance to widowed daughters or children due to their compulsion. Older women (57.14 percent) have more dependents than older men (50.59 percent). This indicates that even after retirement elderly continue to bear family responsibilities and burden. So far we examined the social security beneficiaries and pensioners separately. Barring a few parameters, the behaviour of social security beneficiaries and pensioners are almost the same. Thus in the succeeding

10 183 paragraphs and tables, social security beneficiaries and pensioners are together discussed but not pooled Freedom to Spent Money and Gender During the survey, the elderly were asked whether they spent money according to their preferences. The survey results show that percent of the elderly spent income according to their preference regularly, while percent of the social security beneficiaries enjoyed the same freedom. The study findings show that older men (81.80 percent) have more freedom to spent money as per their preference than women (69.80 percent). In the case of social security beneficiaries, a greater proportion of older women (72.2 percent) enjoy complete freedom in spending money. This may be because percent of older women stay with spouse or children. Further analyzing the reasons, it is found that in the case of percent of elderly, children manage their pension amount, while spouse manages the pension amount in the case of percent. It is noticed that income of female pensioners (39.29 percent) and male pensioners (38.24 percent) were managed by spouse. While 50 percent of social security beneficiaries, both male and female, gave their pension amount or income to children Work Participation Rate of Elderly Studies (Rajan, 2010) opine that even at old age elderly were forced to work in India. Table (5.8) shows the work participation rate of elderly in the study area. Table 5.8 Gender Wise Work Participation Rate of Elderly Employment status Male Female Pensioners Employed 14(16.47) 3(3.57) 17(10.06) Unemployed 71(83.53) 81(96.42) 152(89.94) 85(100) 84(100) 169(100) Social security beneficiaries Employed 15(41.67) 32(29.63) 47(32.64) Unemployed 21(58.33) 76(70.37) 97(67.36) 36(100) 108(100) 144(100) Figures in the brackets show percentages percent of elderly in the study area were actively engaged in some economic activity. This is consistent with elderly s work participation rate (22.9 percent) experienced in the state (Census Report, 2001). Participation in economic

11 184 activities tends to decline with age for both pensioners and social security beneficiaries (Punia et al, 1987). After retirement percent of pensioners continued their participation in economic activities. Higher work participation (32.64 percent) among social security beneficiaries is an indication of inadequacy of social security benefits in the state. The survey data reveal a strong gender-wise difference in the employment status of elderly. It is found that relatively high work participation rate is shown by older men among both pensioners and social security beneficiaries than older women (Pleau, 2010). Older women will be more likely to be engaged in care giving role like caring grand children, providing assistance in household chores etc which are not intangible. Compared to female pensioners (3.6 percent), more work participation is showed by older women receiving social security beneficiaries (29.6 percent). Female pensioners having regular pension show less interest in continuing their work after retirement. Older women receiving social security benefits were more likely to be engaged in informal sector. Since, there were no official retirement age; they continue to work even after 60 years. Employment status Less than Pensioners-> 2000 Employed 3 60) Unemployed 2 (40) 5 (100) Social security beneficiaries Table 5.9 Employment Status of Elderly on the Basis of Income Less than (4.44) 43 (95.56) 45 (100) income of elderly (13.64) 38 (86.36) 44 (100) Employed 19 (17.12) 17 (89.47) 7 (77.78) Unemployed (82.88) (10.53) (22.22) (100) (100) (100) Figures in the brackets show percentages ) 38 (97.44) 39 (100) (100) 0 1 (100) (8.69) 21 (91.31) 23 (100) and above 3 (23.08) 10 (76.92) 13 (100) Above (75) 1 (25) 4 (100) 17 (10.06) 152 (89.94) 169 (100) 47 (32.64) 97 (67.36) 144 (100)

12 185 Further we examined the role of pension income in determining the labour force participation of elderly. Income-wise analysis shows that though elderly from high and low income group are involved in economic activity, greater participation is shown by elderly from low income group. Pensioners in the low income category suggest financial difficulties (Lui Ping Loi and Kenneth S. Shultz, 2007) as the reason to continue work in later ages while higher income group reported that availability of job and the interest for engaging in some activities as the reason for work participation. In the case of social security beneficiaries, as income increases, the employment rate among elderly has showed a decline because better income among elderly may lead them to prefer leisure. In the case of 89 percent of the social security beneficiaries, financial difficulty is the main reason influencing participation in economic activity. Work participation rate of rural social security beneficiaries was higher than their counterparts in urban areas. Higher level of poverty and availability of self employment and casual work opportunities (Prakash and Abraham, 2004) in rural labour market may increase elderly s chances to get employed Reasons for Not Working An enquiry was made among the elderly who remained unemployed during the period of survey. Usually low labour force participation is considered as a sign of receiving better social security benefits and support from family members. Table (5.10) examines the factors that made elderly to remain unemployed.

13 Pensioners 186 Table 5.10 Distribution of Elderly on the Basis of the Factors Preventing them from Seeking Pensioners 35 (23) Social 77 security (79.4) beneficiaries Physical Enjoying constraint leisure 17 (11.2) 0 Employment Not interested to work 58 (38.2) 7 (7.2) Figures in the bracket show percentages Not allowed by children 10 (6.6) 7 (7.2) Lack of education or required skills 10 (6.6) 0 Other reasons 22 (14.47) 6 (6.2) 152 (100) 97 (100) Nearly 80 percent of social security beneficiaries point out ill health as the most important factor preventing them from seeking employment. 6.6 percent of pensioners point out low education and lack of skill as the reasons to remain unemployed after retirement. Compared to social security beneficiaries (7.2 percent), a greater proportion of pensioners (38.2 percent) reported they are not interested to continue work after old age. Compared to men, older women have shown less interest in seeking job at old age. Poor health restricts percent of older men with social security beneficiaries to continue work Savings and Mode of Savings Savings made by elderly during their working years strongly influence their wellbeing at old age. Table (5.11) examines the saving behaviour of elderly in the sample districts. Social security beneficiaries Table 5.11 Distribution of Elderly on the Basis of Saving Behaviour Savings Male Female Yes 64 (75.29) 49 (58.33) 113(66.86) Figures in the bracket show percentages No 21(24.71) 35(41.67) 56(33.14) 85(100) 84(100) 169(100) Yes 2(5.56) 10(9.26) 12(8.33) No 34(94.44) 98(90.74) 132(91.67) 36(100) 108(100) 144(100)

14 187 Nearly 40 percent of older persons in the study area continue to save at old age. It is observed that pensioners (66.86 percent) tend to save more than social security beneficiaries (9.09 percent). This is expected as pensioners are having relatively high income than social security beneficiaries. As income increases, the proportion of pensioners with savings increases from 20 percent (for income less than Rs.2000) to 100 percent (for income Rs10000 and above). But in the case of social security beneficiaries though there is a positive association between savings and income, at higher levels of income an inverse relation is exhibited by these two variables. It may be pointed out that elderly gave a significant portion of their income to family members. Those elderly with dependent children, low income and poor health are more likely to dissave (Temple and Peter.D.Brandon, 2009). Further, it is noted that elderly utilized their savings earlier for house construction and children s marriage. Gender wise differences show that male pensioners tend to save more since they are having more pension amount than females. In the case of social security beneficiaries, older women save more than men. Generally females in the low income group show more interest to save than men. Among pensioners, urban pensioners tend to save more than their counterparts in rural area. Similar pattern is witnessed in the case of social security beneficiaries also. This may be because in urban area better saving facilities are available. Majority of rural and urban pensioners deposited savings in banks. While social security beneficiaries especially in rural areas saving mode includes bank and chitties. This shows that formal banking institutions occupy a major role in mobilizing savings Attitude towards Old Age Elderly were asked about the feeling of getting aged percent of older persons reported that they do not have such feeling. Compared to women (12 percent), older men (33.9 percent) do not have the feeling of old. Among the elderly who responded positively, reasons were enquired. More than one-fourth of elderly (27.71 percent) reported that their dependency on children made them to feel so. Half of the respondents in the study areas pointed out poor health situation

15 188 and age increase as the reasons for feeling old. Retirement from work, birth of grand children and weak memory were also pointed out by elderly for feeling old Preference at Old Age Older persons were asked while partition, whether they give preference to a child whom they like to stay with percent said they have not yet decided about partition of assets percent said they give preference to child whom they plan to live with. Older women gave more preference to child whom they are more likely to stay than older men Inviting for Trips percent of pensioners and percent of social security beneficiaries reported that they do not go for any pleasure trips with children or family members. Male pensioners (35.29 percent) show more participation in pleasure trips than female pensioners (26.19 percent). While among social security beneficiaries older women (9.26 percent) show more participation in trips than older men (5.56 percent). It is noted that income and physical disabilities limit their participation in recreational activities percent reported poor financial position and percent reported adverse health condition as the reasons percent of elderly were not invited by children or family members for pleasure trips. The proportion of elderly who are interested to go for trips but not invited by children is nearly double in the case of social security beneficiaries (29.9 percent) than pensioners Participation in Family Matters Traditionally elderly enjoyed an authoritative role in the decisionmaking in family matters. This authoritative role is an indicator of social acceptance of elderly in our society. In the present decade, they are gradually marginalized in the decision-making process (Singh, 2009). We examined the role of older persons in decision-making in family matters. The participation of elderly in family matters will vary according to their economic and social status Place of Residence and Participation in Family Matters Usually families in the rural areas will be following traditional values, which place elderly in a prestigious and elevated position in families. Therefore, elderly living in rural area is expected to enjoy greater role in decision making.

16 Social security beneficiaries Pensioners Complete control Joint decision Participate but no role in decision making Donot interfere Not informed 189 Table 5.12 Place of Residence and Participation in Family Matters Participation in family matters Place of residence Urban 40 (66.66) 10 (16.67) 10(16.67) (100) Rural 47 (43.11) 31 (28.44) 17(15.60) 5(4.59) 9(8.26) 109(100) 87 (51.48) 41 (24.26) 27(15.98) 5(2.96) 9(5.32) 169(100) Urban 8(38.09) 5(23.81) 3(14.29) 1(4.76) 4(19.05) 21(100) Rural 28 (22.76) 22 (17.89) 46(37.39) 2(1.63) 25(20.33) 123(100) 36(25) 27 (18.75) 49(34.03) 3(2.08) 29(20.14) 144(100) Figures in the bracket show percentages Table (5.12) shows rural-urban differences in elderly s participation in family matters. The results point out rural-urban difference in decision making with urban elderly showing more participation in decision making than rural elderly. The proportion of pensioners having complete control in the decision making in urban areas is percent while it is only percent in rural area. It is found that older persons in urban areas were managing a major portion of household expenses. This made them to enjoy a greater role in deciding family matters. Similar situation is noticed in the case of social security beneficiaries also. Greater decision-making power is observed among urban elderly (38.09 percent) than rural social security beneficiaries.

17 Social security beneficiaries Pensioners Complete control Joint decision Participate but no role in decision making Donot interfere Not informed Nature of Family and Participation in Family Matters Family nature has an important role in the decision making of elderly. It is believed that elderly in nuclear families have more involvement in decision-making than in joint families. Table 5.13 Participation of Elderly in Family Matters on the Basis of Family Nature Participation in family matters Nature of family Nuclear Joint Nuclear Joint Figures in the bracket show percentages In the study regions percent of pensioners live in nuclear families. Of this percent of pensioners reported complete control in family. Among those elderly staying in joint families, only percent have complete involvement in household matters and thus, there are more opportunities for elderly to participate in decision-making in nuclear families. 66 percent of social security beneficiaries live in joint families. Of this percent are not informed or consulted on family matters. Older persons in this group opined that children were able enough to manage family matters alone. But elderly in these families were dependent on children for basic needs. This financial dependency made them to keep away from decision-making.

18 Social security beneficiaries Pensioners Complete control Joint decision Participate but no role in decision making Do not interfere Not informed Age and Participation in Family Matters There is a notion that economic decision making is impaired by age. Kovalchik et al (2004) pointed out that there is no difference between the decision-making behaviour of older adults and young adults. Table (5.14) shows the influence of age and the participation of elderly in family matters. Table 5.14 Age-wise participation on Family matters Age of respondents Participation in family matters (58.16) 25(25.51) 10(10.20) 2(2.04) 4(4.08) 98(100) (44.45) 13(20.63) 15(23.81) 3(4.76) 4(6.35) 63(100) 80+ 2(25) 3(37.50) 2(25) 0 1(12.50) 8(100) 87(51.48) 41(24.26) 27(15.98) 5(2.96) 9(5.32) 169(100) (25.45) 11(20) 19(34.55) 1(1.82) 10(18.18) 55(100) (30.36) 12(21.43) 18(32.14) 1(1.79) 8(14.29) 56(100) 80+ 5(1.52) 4(1.21) 12(36.36) 1(3.03) 11(33.33) 33(100) 36(25) 27 (18.75) Figures in the bracket show percentages 49(34.03) 3(2.08) 29(20.14) 144(100) Among 87 pensioners who enjoyed complete control in the decision making, percent belongs to the age group 60+. As age increases, the participation of elderly in decision-making has shown a decline. Though there is a decline in participation 62.5 percent of pensioners above age 80 have some role in decision-making. This is mainly because pensioners contribute a significant portion of their income to household needs and in many cases their pension forms a major part of family income. This ensures their participation in decision-making

19 192 Regarding social security beneficiaries, it is found that 25 percent of the older persons are having complete role in decision-making. Among elderly in various age groups, persons in the age group 70+ have greater role in family matters. The proportion of elderly who are not consulted in household decisionmaking has increased from percent in the age group 60+ to percent in age group 80+. Lesser involvement of elderly in decision-making may be due to their lower contribution to family income and dependence on children for their basic needs Participation in Family Matters and Educational Qualification Education plays an important role in the decision making ability of an individual. Here we examine whether educational qualifications of older persons made any difference in the participation in household matters Table 5.15 Participation of Elderly in Family Matters According to their Educational Status Educational qualification Does not know to read and write Complete control Participation in family matters Joint decision Participate but no role in decision making Do not interfere Not informed 25(27.47) 16(17.58) 31(34.07) 2(2.19) 17(18.68) 91(100) Primary 10(25.64) 9(23.08) 12(30.77) 1(2.56) 7(17.95) 39(100) Upper primary 15(35.71) 6(14.29) 14(33.33) 0 7(16.67) 42(100) Secondary 44(50) 22(25) 14(15.91) 2(2.27) 6(6.82) 88(100) Higher secondary 5(45.45) 3(27.27) 2(18.18) 0 1(9.09) 11(100) Graduation 13(59.09) 7(31.82) 1(4.55) 1(4.55) 0 22(100) Post graduation 2(66.67) 0 1(33.33) 0 0 3(100) Others 9(52.94) 5(29.41) 1(5.88) 2(11.76) 0 17(100) 123(39.29) 68(21.73) 76(24.28) 8(2.56) 38(12.14) 313(100) Figures in the bracket show percentages

20 193. The survey data show that with increase in the level of education, the participation of elderly in household matters increase. For elderly having primary school education, the proportion with complete participation in family matters is only percent. It increased to percent in the case of elderly having post graduation degree. Similar pattern is observed when we examine the impact of education in the participation of pensioners and social security beneficiaries. In the case of pensioners, it is found that education qualifications have an important role in determining women s role in decision-making than men. Among elderly having primary level education, 80 percent of older men are consulted, while it is only 20 percent in the case of female pensioners. This shows that for older men, irrespective of their education they have complete participation in decisionmaking. Role of older men is more influenced by our tradition of favouring men. This may be the reason for high participation rate. This gender difference is also true in the case of social security beneficiaries. Among elderly having secondary level education, 44.4 percent of older women have no involvement in decisionmaking, while all men in this category have some role in decision-making Sex of Respondents and Participation in Family Matters Table (5.16) examines whether there is any gender difference in the participation of family matters. The results show that in the case of pensioners, gender plays an important role in the involvement in family matters percent of older men reported that they are having complete control in decision-making at home, while their proportion in the case of female pensioners is percent. This indicates that loss of control in decision-making was experienced more by older women than men (Nayar, 1996). One-third of older women seek the support of their husband or children for taking decisions in family. Further, greater participation in decision-making is noticed among older women staying with children than with spouse.

21 Social security beneficiaries Pensioners Complete control Joint decision Participate but no role in decision making Do not interfere Not informed 194 Table 5.16 Gender Wise Distribution of Elderly by their Participation in Family Matters Sex of respondents Participation in family matters Male Female 64 (75.29) 23 (27.38) 13 (15.29) 28 (33.33) 6(7.06) 2(2.35) 0 85(100) 21(25) 3(3.57) 9(10.71) 84(100) 87(51.48) 41(24.26) 27(15.98) 5(2.96) 9(5.32) 169(100) Male 27 36(25) (18.75) Figures in the bracket show percentages While analyzing the involvement in decision-making, no gender difference is noted in the case of social security beneficiaries percent of older men and percent of older women do not have any role in decisionmaking. The proportion of those older women who are having complete control in the family matters was percent while their proportion in the case of older men were percent. More than half of older women who stay with children reported to have no role in household decision-making. Problems with children and low contribution to family income restricted women s participation in family matters. The survey findings show that in the case of lower income groups, factors other than gender have an important role in determining elderly s participation Health Rating and Participation in Family Matters family matters. 10 (27.78) ) 6(16.67) 1(2.78) 13(36.11) 36(100) Female 26(24.07) 21(19.44) 43(39.81) 2(1.85) 16(14.81) 108(100) 49(34.03) 3(2.08) 29(20.14) 144(100) Table (5.17) shows influence of health on elderly s participation in

22 Social security beneficiaries Pensioners Complete control Joint decision Participate but no role in decision making Do not interfere Not informed 195 Table 5.17 Rate of health and participation in family matters Participation in family matters Health status Satisfied 68(55.74) 29(23.77) 14(11.48) 5(4.09) 6(4.92) 122(100) Dissatisfied 19(40.42) 12(25.53) 13(27.66) 0 3(6.38) 47(100) 87(51.48) 41(24.26) 27(15.98) 5(2.96) 9(5.32) 169(100) Satisfied 9(16.07) 22(39.29) 12(21.43) 11(19.64) 2(3.57) 56(100) Dissatisfied 27(30.68) 27(30.68) 17(19.32) 16(18.18) 1(1.14) 88(100) 36(25) 27 (18.75) 49(34.03) 3(2.08) 29(20.14) 144(100) Figures in the bracket show percentages It is evident from the data that in the case of pensioners, health status has significant influence on involvement in family matters. Those elderly with satisfied health status has a major or partial role in decision-making (79.50 percent) than those with dissatisfied health status (44.53 percent). The survey data reveal a distinct picture in the case of social security beneficiaries. If a person is not healthy, it reduces his or her chance to participate in decision-making. It is seen that among the elderly with dissatisfied health status percent were having at least some role in decision-making, while elderly with satisfied health status percent reported to have some role in decision-making at home. This suggests that among social security beneficiaries variables other than health status has a significant role in determining participation in family matters.

23 Social security beneficiaries Pensioners Complete control Joint decision Participate but no role in decision making Do not interfere Not informed Martial status and Participation in Family Matters Martial status has an important role in determining the participation of elderly in family matters. Widowed parents appear to be less frequently involved in household decision-making than others (Vijayakumar, 1999). Table 5.18 Martial Status of Respondents and Participation in Family Matters Martial status Participation in family matters Married 65(63.11) 27(26.21) 7(6.79) 3(2.91) 1(97.08) 103(100) Widowed 19(31.67) 14(23.33) 18(30) 2(3.33) 7(11.67) 60(100) Unmarried/ divorced/ separated 3(50) 0 2(33.33) 0 1(16.67) 6(100) 87(51.48) 41(24.26) 27(15.98) 5(2.96) 9(5.32) 169(100) Married 11(26.19) 11(26.19) 7(16.67) 1(2.38) 12(28.57) 42(100) Widowed 17(19.77) 15(17.44) 38(44.19) 1(1.16) 15(17.44) 86(100) Unmarried/ divorced/ separated 8(47.06) 1(5.88) 4(23.53) 1(5.88) 2(11.76) 17(100) 36(25) 27 (18.75) Figures in the bracket show percentages In the study area percent of sample pensioners are widows. Of this 45 percent of older persons do not have any role in the decision-making, while among pensioners with spouse percent reported to have complete control in family matters. The results show that martial status has a significant influence in the position of elderly in families. 49(34.03) 3(2.08) 29(20.14) 144(100)

24 Complete control Joint decision Participate but no role in decision making Donot interfere Not informed 197 Like pensioners, significant influence of martial status on decisionmaking is not reported in the case of social security beneficiaries percent of the elderly who are married and percent of the elderly who are widowed reported complete participation in family matters. Nearly 63 percent of the beneficiaries who are widowed do not have any role in family matters Participation in Family Matters and Monthly Income Financial status of older persons has an important role in determining their participation in family matters. Income of elderly and property rights and ownership can be considered as indicators of financial status. Income is an important determinant of an individual s involvement in decision-making. Table 5.19 Participation in Family Matters and Monthly Income monthly income of elderly Participation in family matters Pensioners Less than (20) 2(40) 1(20) 0 1(20) 5(100) (22.22) 15(33.33) 16(35.56) 0 4(8.89) 45(100) (72.73) 5(11.36) 5(11.36) 1(2.27) 1(2.27) 44(100) (64.10) 5(12.82) 4(10.26) 3(7.69) 2(5.13) 39(100) (52.17) 11(47.83) (100) and above 7(53.85) 3(23.08) 1(7.69) 1(7.69) 1(7.69) 13(100) 87(51.48) 41(24.26) 27(15.98) 5(2.96) 9(5.32) 169(100) Social security beneficiaries Less than (24.32) 19(17.12) 38(34.23) 2(1.80) 25(22.52) 111(100) (26.32) 2(10.53) 7(36.84) 1(5.26) 4(21.05) 19(100) (33.33) 4(44.45) 2(22.22) 0 0 9(100) (100) (100) Above (25) 1(25) 2(50) 0 0 4(100) 36(25) 27 (18.75) Figures in the bracket show percentages 49(34.03) 3(2.08) 29(20.14) 144(100)

25 198 It is evident from table (5.19) that there arises positive association between income and participation in family matters. 44 percent of elderly who earn monthly income less than Rs.4000 reported that they are not consulted by children in taking decisions. In the case of pensioners with income more than Rs.6000, percent reported no role in decision-making. It is seen from the data that as income increases elderly s participation in household decision-making increases. But at higher level of income, their participation in family matters has shown a decline. This is because at higher income group there is a tendency among the elderly to not interfere in family matters. These trends are noticed in region wise analysis also. Greater involvement in decision-making in family matters is seen among pensioners from Thiruvanthapuram district. They contribute a major share in household expenditure. This made children to consult them before taking decisions. Among elderly having monthly income more than Rs.6000, it is found that older men (79.07 percent) are more consulted before taking decisions than older women (31.25 percent). Nearly 78 percent of the social security beneficiaries were having a monthly income less than Rs.500. Out of this; about 59 percent does not have any role in decision-making. As income increases, the proportion of elderly showing high participation in decision-making has increased. Among the social security beneficiaries, older persons earning income between Rs.1000-Rs.1500 showed higher involvement in decision-making (33.33) than other income groups. Greater participation in decision-making is noticed among males than females. But at higher level of income, no gender difference is observed Ownership of House and Participation in Family Matters Ownership of house is an important determinant influencing participation in family matters. Older persons who have financial assets have greater bargaining power in household decision-making than elderly without financial assets.

26 Complete control Joint decision Participate but no role in decision making Donot interfere Not informed 199 Table 5.20 Distribution of Elderly by Ownership of House in Participation in Family Matters Ownership of house Pensioners Participation in family matters Self 67(59.29) 22(19.47) 18(15.93) 2(1.77) 4(3.54) 113(100) Spouse 10(5.88) 5(29.41) 1(5.88) 1(5.88) 0 17(100) Children Others 5(25) 8(40) 4(20) 2(10) 1(5) 20(100) 1(7.69) 6(46.15) 3(23.08) 0 3(23.08) 13(100) Rented 4(66.67) 0 1(16.67) 0 1(16.67) 6(100) 87(51.48) 41(24.26) 27(15.98) 5(2.96) 9(5.32) 169(100) Social security beneficiaries Self 22(25.88) 16(18.82) 29(34.12) 2(2.35) 16(18.82) 85(100) Spouse 2(25) 1(12.50) 1(12.50) 0 4(50) 8(100) Children Others 3(15) 3(15) 9(45) 1(5) 4(20) 20(100) 4(20) 4(20) 8(40) 0 4(20) 20(100) Rented 5(45.45) 3(27.27) 2(18.18) 0 1(9.09) 11(100) 36(25) 27 (18.75) Figures in the bracket show percentages 49(34.03) 3(2.08) 29(20.14) 144(100) Table (5.20) shows distribution of elderly by ownership of house and participation in family matters. The survey data reveal that elderly staying in self owned house has greater participation in family matters (59.29 percent) than elderly staying in houses owned by children (25 percent). Even among elderly staying in self-owned house, females (32.65 percent) have low participation or are less consulted than males (79.69 percent). This difference is noticed in the case of

27 200 elderly living with children also. Only percent of older women staying in houses owned by children have participation in decision-making where as all the older men in this category are consulted by children before taking decision at home. Similarly, in the case of social security beneficiaries, 85 percent of elderly staying in houses owned by children has no role in decision-making at home. While in the case of elderly staying in self-owned houses, percent reported no role in household decision-making. Only one-fourth of older women and percent of older men among the elderly living in self-owned houses have greater role in decision-making. Among the older persons staying in self owned houses, greater participation is seen in the case of older persons from Thiruvanthapuram district. Majority of them stays either with spouse and children or with spouse only Land Area Owned and Participation in Family Matters Land area owned by elderly is an economic asset. Economic assets play an important role in determining elderly s participation in family matters. Among the elderly who do not possess land, percent of pensioners and 28 percent of social security beneficiaries transferred the ownership of land to children. As land area owned by elderly increases, the proportion of elderly who have some role in decision-making increases. Among elderly with no ownership of land, percent reported to have complete or partial participation in family matters. Among elderly having ownership of land area between 60 cents and 1 acre, percent reported to have some role in decision-making on family matters. Gender-wise analysis shows that as the land area owned increases, more participation in family matters were shown by older men than women. Among elderly owning more than 60 cents of land all older men have complete control in decision-making while it is only percent for females. Among three age groups though land area owned is positively associated with participation in family matters, greater participation in decision-making is shown by older persons in the age group

28 Complete control Joint decision Participate but no role in decision making Donot interfere Not informed 201 Table 5.21 Participation in Family Matters and Land Area Owned Land area owned Participation in family matters Pensioners No land 16(38.09) 14(33.33) 6(14.29) 2(4.76) 4(9.52) 42(100) 1-30 cents 58(56.86) 19(18.63) 19(18.63) 2(1.96) 4(3.92) 102(100) cents 6(46.15) 5(38.46) 1(7.69) 0 1(7.69) 13(100) 60-1 acre 5(71.43) 1(14.29) 0 1(14.29) 0 7(100) 1-5 acres 2(40) 2(40) 1(20) 0 0 5(100) 87(51.48) 41(24.26) 27(15.98) 5(2.96) 9(5.32) 169(100) Social security beneficiaries No land 14 (28) 11(22) 13(26) 1(2) 11(22) 50(100) 1-30 cents 20(22.22) 16(17.78) 35(38.89) 2(2.22) 17(18.89) 90(100) cents 2(50) 0 1(25) 0 1(25) 4(100) 27 36(25) 49(34.03) 3(2.08) 29(20.14) 144(100) (18.75) Figures in the bracket show percentages Participation in Family Matters and Economic Dependency Level On the basis of the nature of dependence, levels of economic dependence of elderly were categorized into three- not dependent, partially dependent and fully dependent.