Pension schemes and the old people in Ethiopia

Abstract

Income insecurity in countries where the majority of the population live at the subsistance level, is considerably high. The majority of the population in Ethiopia live in rural areas where agriculture is commonly practised at the subsistance level. As a result poverty measured in terms of income level shows that the majority of the population live in poverty situation. In such case the situation for such vulnerable groups like elderly is worse as this groups are usually neglected by society because of economic and political reasons. The low level of income has influence on the health and other aspects of the people. Therefore, ensuring adequate income to the population in general and the old people in particular is very crucial. This paper assess the role of pension schemes in Ethiopia in meeting the financial needs of the old people. The assessment of the subject is made having in mind the changes in demographic situation of older people and the traditional form of support system as it is caused by such factors like industrialization, urbanization and modernization. This has been done using library works in which books, journals, and organizations' records are consulted.