Problems and Challenges Faced by the Elderly in Economic Participation and Access to Financial Capital

Abstract

Amidst current demographic trends, a significant increase in the elderly population is observed within the Sri Lankan social context. The differentiation of the elderly population has had a distinctive impact on the fields of economic production, consumption, and savings. Economic participation and financial capital are crucial for individual life sustainability. The research problem here involves exploring the problems and challenges the elderly face when accessing economic participation and financial sources.

The research methodology employed is a mixed-methods approach. A random sample of 25 elderly individuals was selected from the Ranna (West) Grama Niladhari Division of the Tangalle Divisional Secretariat. Data was collected using primary and secondary sources, and the analysis was conducted both quantitatively and qualitatively. Research findings revealed that 68% of the respondents in the sample faced various difficulties in economic participation and accessing financial assets. Economic activities of the elderly have been hampered due to health issues, and the necessity for long-term medical treatment has become a barrier to accessing savings and future investments.

Since the majority of respondents were employed in the informal sector, they do not possess claims to pension or provident fund benefits. Consequently, elderly widowed women have become the most economically insecure group within this context. Although a small number of elderly individuals in the sample receive pensions, they remain in a state of dependency on the aid and support of their children. Furthermore, the participation of the elderly in making economic decisions within the family exists at a minimal level. Many elderly individuals have also lost income sources by transferring property to their children. This disparity in economic participation and financial capital has created an attitudinal pattern of dependency and stratification among the elderly. Therefore, it is most timely to explore the implications of economic participation and financial capital of the elderly when formulating socio-economic policies for them; this can serve as a support mechanism in ensuring life sustainability and well-being in old age.