Economic Well-being of the Filipino Elderly*

Economic Well-being of theFilipino Elderly*

GRACE T. CRUZ**

* Paper presented in a poster session at the 1998 Population Association of AmericaAnnual Meeting held on April 2-4, 1998 at the Hyatt Regency Chicago, Chicago,Ilinois.

**Assistant Professor at the Population Institute, CSSP, UP (Diliman). She is also thesecretary of the Demographic Research and Development Foundation (DRDF). Sheis an active researcher on the older people and adolescent sexuality where she hasauthored several articles. At present, she is working on her dissertation for herdoctorate degree in Sociology at the University of the Philippines, Diliman.

ABSTRACT

Sa resulta ng “1996 Philippine Elderly Survey (PES)”,ang unang pambansang sampol na kumakatawan sa mganakakatandang mamayan ng ating bansa ay nagpakita ngpagkakaroon ng mga nakakatandang Pilipino ng mababangestadong pang-ekonomiya. Ang karamihan ay nag-aalala sakanilang kalagayang pinansiyal. Sa kabila ng pagkakaroonng hindi lamang iisang pinagkukunan ng kita, ang kanilangkita ay mababa lamang at nagkakaroon pa sila ng malakinggastos at pagkakautang. Sapagkat ang karamihan sakanila’y tumatayo pa ring tagapamahala ng kanilang mgatahanan, patuloy pa rin silang nag-aambag ng makabuluhangbahagi sa panggastos sa tahanan.

Ang mga tulong mula sa mga anak at mga kamag-anak ang tinatayang pinakaimportanteng pinagkukunan ngkita ng mga kababaihang nakakatanda samantalang angkita sa trabaho at bukid ang pinagkukunang naman ng mgakalalakihan. Kaunti lamang ang nakakatanda at karamihanpa ay mga lalaki ang may mga di-nanggagaling sa pamilyana pinagkukunan ng suporta katulad ng pensyon. Sa kabilang pagkakaroon ng mababang kita, ang mga Pilipinongnakakatanda ay nagreport ng mataas na bahagdan ng pag-aari ng mga lupa’t bahay. Ang pagkakaroon din ng ibangari-arian tulad ng alahas at iba pang kasangkapan aykaraniwan din.

vol. 56 nos.1-4, jan-dec 1999 PHILIPPINE SOCIAL SCIENCES REVIEW

42

INTRODUCTION

The United Nations has declared 1999 as the “International Year ofthe Older People.” This is significant considering that past attention onthe younger sector of the population has somehow deflected attentionfrom the older cohort relegating most of them to the margins of life.Associated with infirmities and low productivity, the elderly are oftenconsidered the surplus of the world that need to be shut in institutionsto give way to the young which society admires and celebrates. Ironicallythese are the people who are most in need of care and attention giventheir waning health and their increasing withdrawal from the economicsphere.

In line with this international mandate, the Philippine governmenthas initiated efforts to address the broad interests of the Filipino olderpeople. A valuable step towards this end is the Philippine Plan of Actionfor the Older People. Along with this government effort are academicresearches on the elderly which has given impetus to the infantileresearch on the elderly in the country. One such research is based onthe 1996 Philippine Elderly Survey (PES), the first to derive a nationallyrepresentative sample of elderly in the country. This paper is apreliminary attempt to bring to fore findings of such study focusing onthe economic well-being of older persons. It presents economiccondition, vulnerabilities and preferences of the elderly with the hopeof their being appreciated and integrated in society. The paper hopesto provide direction in terms of the necessary preparations needed inthe face of a burgeoning elderly population.

DATA AND METHODOLOGY

This paper is based on the data provided by the 1996 PES which wascollected by the University of the Philippines Population Institute (UPPI)/Demographic Research and Development Foundation (DRDF). Thesample consisted of 2,285 respondents aged 50 years old and older, ofwhom 1,131 were aged 60 years and older. The study was part of acomparative study on the elderly and near-elderly in four Asian countries(Philippines, Singapore, Taiwan and Thailand) aimed at investigating howrapid demographic change in these societies has affected the welfareof the elderly. For purposes of the study, the elderly (alternatively referredto as older person in this paper) includes those who are aged 60 yearsand over following the UN definition while the near-elderly includes thoseaged 50-59.

ECONOMIC WELL-BEING OF THE FILIPINO ELDERLY Grace T. Cruz

43

The general difficulty of collecting income data, exacerbated by theage factor in the 1996 PES necessitated the need to look at multipledimensions of economic security of the elderly to be able to come upwith a valid assessment of their economic well-being. To a certain extent,this has been achieved in the 1996 PES which collected a whole rangeof indicators including the sources and level of income and expendituresof the elderly. Other economic assets including ownership of currentresidence and the land where it stands, real estate, cash savings, jewelry,appliances and the like were likewise looked into. The study likewiseexplored the economic sufficiency of the elderly’s social base gauged interms of household (HH) income and the number of income earners (otherthan the elderly). Intergenerational transfers which include gifts of foodand non-food or cash items between the elderly and his/her children andother relatives were likewise noted.

The study also gathered information on expenditures (or disbursements)in the elderly’s HH and the manner in which these were managed i.e.were they pooled or do different HH members take care of assignedexpenses? The elderly were asked about debts they incurred as well astheir perception insofar as the sufficiency of their household income vis-a-vis expenditures were concerned. Given its relevance in assessing theircurrent economic status, the elderly’s practice and plans insofar as thetransfer of their properties or assets to their children or desired heir werealso looked into.

The study faced certain limitations however among which was thesubjective nature of the information. Data was also limited by recall biaswhich was further complicated by the age factor. Anticipating suchproblems, the study employed certain strategies to enhance data qualitysuch as the use of bracketing to assist in the recall. Different time frameswere likewise utilized to estimate the various aspects of expenditures tominimize retrieval problems. For instance, weekly food consumptionexpenditure was gathered while expenditure on HH operating expenseswere taken on a monthly basis.

Despite these measures intended to improve reporting accuracy, therewas still a high level of refusal rate for income data. Results of the studyindicate at least 4.4 percent of all respondents who either declared theydid not know or did not have any response to the question on the levelof their income in the year preceding the survey. The proportion increasedwith age (3 and 5.5 percent for ages 50-59 and 60+, respectively), andwas higher among urban resident and female respondents (Table 1). Note


44

that that number of cases are not stated in the tables since consistentlythe same number of respondents are used in the analysis of this paper.

ELBAIRAV detropeRohW%INroKD

oNdetropeRohW%emocnI

LATOT 4.4 6.5

sutatSlatiraMdeirraMreveN

deirraMdewodiW

detarapeS/decroviD

-0.46.58.1

7.813.13.315.41

egA95-05

+060.35.5

1.32.7

ecnediseRnabrUlaruR

7.75.1

1.75.4

xeSelaM

elameF9.38.4

0.39.7

TABLE 1TABLE 1TABLE 1TABLE 1TABLE 1LEVEL OF REPORTING INCOME VARIABLELEVEL OF REPORTING INCOME VARIABLELEVEL OF REPORTING INCOME VARIABLELEVEL OF REPORTING INCOME VARIABLELEVEL OF REPORTING INCOME VARIABLE

(% WHO CLAIMED DK OR NI)(% WHO CLAIMED DK OR NI)(% WHO CLAIMED DK OR NI)(% WHO CLAIMED DK OR NI)(% WHO CLAIMED DK OR NI)

Unit of AnaIysisUnit of AnaIysisUnit of AnaIysisUnit of AnaIysisUnit of AnaIysis

Although the study included both the elderly and their successors (ages50-59), this paper will mostly focus on the former with the data on thenear-elderly employed only for comparative purposes. Generally, income,assets and expenditure data in the study were collected separately forthe respondent and spouse (elderly couple). Other information particularlyon income received in the previous year, share in household expenditures,debts, ownership of other assets were collected using the couple as theunit of analysis. Sources of income, home and land ownership weregathered separately for the respondent and spouse although these werestill reported from the perspective of the respondent.

One possible limitation of gathering information for both the respondentand spouse however is the possibility of a response bias arising from


45

income reporting between male and female respondents as reflected inthe study. Gender consistency of income report in the study was examinedby comparing the income reports of married respondents (Tables 2 and3). Although results are not very consistent, evidence tend to showhusbands reporting higher income than wives. Sociological studies suggestthat this can happen in cases where there is no full disclosure ofinformation by the husband who does not report “extra” income to theirwives and use this to support their vices. Hollsteiner (in Medina, 1991)reveals that if the husband’s income is not fixed, he may choose towithhold some of it for his own independent spending. Such findingsuggests some gender issues particularly on the issue of transparencywith regard to financial matters.

EFIWFOEGA)RfoesuopS(

)R(DNABSUHFOEGALATOT

45-05 95-55 46-06 96-56 +07

45-0595-5546-0696-56

+07LATOT

808,96-***036,64

560,14568,73150,62**246,43

592,83862,19404,54463,61*032,25

*666,02211,91093,52*483,02

**683,61947,92999,34292,63

733,15681,65889,13731,62579,14106,04

EFIWFOEGA)R(

)R(DNABSUHFOEGALATOT

45-05 95-55 46-06 96-56 +07

45-0595-5546-0696-56

+07LATOT

894,13****160,23

175,56571,24***673,93

263,44331,33076,03**479,24

*282,81695,83090,74*479,74

930,81037,12264,42048,32

022,14403,73572,13423,13945,93709,63

* < 10 cases

* < 10 cases

TABLE 3TABLE 3TABLE 3TABLE 3TABLE 3MEAN INCOME (FOR ELDERLMEAN INCOME (FOR ELDERLMEAN INCOME (FOR ELDERLMEAN INCOME (FOR ELDERLMEAN INCOME (FOR ELDERLY & SPOUSE) FOR THE PAST YEARY & SPOUSE) FOR THE PAST YEARY & SPOUSE) FOR THE PAST YEARY & SPOUSE) FOR THE PAST YEARY & SPOUSE) FOR THE PAST YEAR

AS REPORTED BY MARRIED FEMALE RESPONDENTSAS REPORTED BY MARRIED FEMALE RESPONDENTSAS REPORTED BY MARRIED FEMALE RESPONDENTSAS REPORTED BY MARRIED FEMALE RESPONDENTSAS REPORTED BY MARRIED FEMALE RESPONDENTS

TABLE 2TABLE 2TABLE 2TABLE 2TABLE 2MEAN INCOME (FOR ELDERLMEAN INCOME (FOR ELDERLMEAN INCOME (FOR ELDERLMEAN INCOME (FOR ELDERLMEAN INCOME (FOR ELDERLY & SPOUSE) FOR THE PAST YEARY & SPOUSE) FOR THE PAST YEARY & SPOUSE) FOR THE PAST YEARY & SPOUSE) FOR THE PAST YEARY & SPOUSE) FOR THE PAST YEAR

AS REPORTED BY MARRIED MALE RESPONDENTSAS REPORTED BY MARRIED MALE RESPONDENTSAS REPORTED BY MARRIED MALE RESPONDENTSAS REPORTED BY MARRIED MALE RESPONDENTSAS REPORTED BY MARRIED MALE RESPONDENTS


46

FINDINGS

Income levelsIncome levelsIncome levelsIncome levelsIncome levels

A small yet significant proportion (5.6 percent) of elderly in the studydeclared to have absolutely no income and expenditure (Table 1). Thisphenomenon is more preponderant among females, those who are notmarried, older and urban residents. What seems surprising however isthat some 16.1 percent of this cohort declared they did not have anyother member of their household who received income (data not shown)although a quarter among them (24.2 percent) incurred some debts whichcould be the source of their sustenance. While the same group isconsistent in admitting that they did not contribute any amount for theirHH expenditures what seems difficult to imagine is their claim of zerocost of HH operating expenses to include food expenditures. Althoughcomprising a negligible proportion of the sample, this finding suggestthe difficulty of gathering accurate and truthful income data.

While almost nine out of ten older people reported some income (moremales than females), a low level of median income was reported coupledby a considerable level of indebtedness. Aggregate income level wasmeasured using median rather than average given the high variabilityof income level reported which ranged from zero (no income) to as highas two million pesos. Results indicate that in the year prior to the survey,the elderly and spouse registered a median income amounting to P12,000compared to P20,000 registered by their near-elderly counterparts. Themale elderly, those in intact marital union and living in urban residenceshad a clear income advantage (Table 4). The urban edge may notnecessarily translate to a better economic well-being however, consideringthe higher cost of living in urban areas which could erode its relativeadvantage. The widowed who exhibited the lowest income at P7,200had incomes much lower than the 1994 per capita poverty threshold(P8,885) which represents the annual per capita income required or theamount to be spent to satisfy nutritional requirements (two thousandcalories) (1996 Philippine Statistical Yearbook). The low income reportedby the widowed confirms that there is a large reduction in family incomewhen the husband dies since the man is usually the breadwinner of thefamily.

The health and wealth of the elderly are positively correlated with eachstep down the income ladder clearly associated with lower health status.The elderly with positive health assessment are more likely to report


47

higher income levels which seems logical considering that the healthierones are more able to work and work for extended hours compared withtheir counterparts with poorer health. On the other hand, those withunstable health conditions are less likely to work and if ever, choose typesof work which will not strain their delicate health condition. Their poorhealth translates not only to lesser income but lower savings and higherhealth expenditures which could further deplete their already precariousfinancial resources. This is particularly so in the Philippines where healthcare expenditures comes out of pocket for the majority of the population.

The marginalized economic state of the older person is significant notonly as it correlates with their physical health but their psychological stateas well. In the study, inquiries were made about the emotionalexperiences of the elderly the week preceding the survey to measuredespondency. This included asking their attitudes or reaction towardsstatements which have economic implications such as: “I felt I was aburden to others”, “I worried about my financial status” and “I worried/

SELBAIRAV EMOCNINAIDEM)sosePnI(

egA.195-05

+06000,02000,21

xeS.2elaM

elameF931,41000,01

sutatSlatiraM.3deirramreveN

deirraMdewodiW

decroviD/detarapeS

000,01000,51002,7000,01

ecnediseR.4nabrUlaruR

000,51000,01

htlaeHfotnemsessa-fleS.5tnellecxEdoogyreV

dooGriaFrooP

462,81000,51000,51000,01000,7

TTTTTABLE 4ABLE 4ABLE 4ABLE 4ABLE 4LEVEL OF INCOME OF ELDERLLEVEL OF INCOME OF ELDERLLEVEL OF INCOME OF ELDERLLEVEL OF INCOME OF ELDERLLEVEL OF INCOME OF ELDERLY AND SPOUSEY AND SPOUSEY AND SPOUSEY AND SPOUSEY AND SPOUSE

BY SELECTED BACKGROUND VARIABLESBY SELECTED BACKGROUND VARIABLESBY SELECTED BACKGROUND VARIABLESBY SELECTED BACKGROUND VARIABLESBY SELECTED BACKGROUND VARIABLES


48

was saddened that my children did not have economically better lives.”Results presented in Table 5 indicate that the elderly with lower incomeswere more likely to have such emotional experiences. Although it isdifficult to establish the direction of the causal chain, it is likely that suchdespondency has been precipitated in part by the their economic state.This finding is significant in the light of a high prevalence of poverty inthe country particularly among the older people.

STNEMERUSAEMYCNEDNOPSED 95-05 +06

srehtootnedrubsawItlefIseYoN

000,51008,02

349,8894,21

sutatslaicnanifymtuobadeirrowIseYoN

000,02000,03

000,01000,51

nerdlihcymtahtdeneddassaw/deirrowIsevilrettebyllacimonoceevahtondid

seYoN

002,91928,82

000,01000,51

The economic deprivations of the elderly mirrors the poverty of thesocial milieu where they are embedded. In the study, the average elderlylives with a large HH where he/she is most likely the HH head (HHH)(Table 6). The high headship rate signifies the high esteem accorded tothe old in our Philippine culture. Such position accorded them also givesolder people an important position in defining the overall economic well-being of the HH where they belong. It is evident that despite their lowincomes the elderly and spouse are most likely the highest income earnersin their HH. The high rate of dependence on the elderly is exhibited bythe significant proportion claim (42.2 percent) which reveals that theyare the lone breadwinners in their HH. A lower proportion (31.8 percent)reported having another member of the HH besides them receivingincome which usually includes a son, daughter or son-in-law. This findingsuggests that it is usually the economically dependent children whocontinue to live with their elderly parents.

TTTTTABLE 5ABLE 5ABLE 5ABLE 5ABLE 5MEDIAN INCOME OF ELDERLMEDIAN INCOME OF ELDERLMEDIAN INCOME OF ELDERLMEDIAN INCOME OF ELDERLMEDIAN INCOME OF ELDERLY AND SPOUSE BY AND SPOUSE BY AND SPOUSE BY AND SPOUSE BY AND SPOUSE BY DESPONDENCYY DESPONDENCYY DESPONDENCYY DESPONDENCYY DESPONDENCY

MEASUREMENTS BY AGEMEASUREMENTS BY AGEMEASUREMENTS BY AGEMEASUREMENTS BY AGEMEASUREMENTS BY AGE


49

Sources of IncomeSources of IncomeSources of IncomeSources of IncomeSources of Income

The Filipino elderly derive their income from multiple sources with eachelderly citing an average of almost two (1.7) sources (Figure 1). The maleelderly exhibits a slight advantage in this regard. Significant differentialsis also observed between the elderly and near-elderly in terms of thestability of their income sources. While both are highly dependent ontheir children, the younger and better educated near-elderly relies moreon their work, farm and family business while their older counterpartsare more dependent on their children and other relatives (Table 7). Such

TNECREP

dlohesuoHfodaeHeraohWylredlEfotnecreP.1elaM

elameF3.786.44

emocnItsoMehtsnraEohWHHs'ylredlEehtforebmeM.2)ylredle(R

esuopSnoS

rethguaD

2.737.312.918.01

noisiceDehtfotsoMsekaMHHehtniohW.3sgnihTrehtOdnatnepSebdluohSyenoMehtwoHtuobA

secnaniFotdetaleRylredlEesuopS

noSrethguaD

2.841.126.78.21

esuopSdnaylredlEsediseBHHnielpoePfo.oN.4emocnIevieceRohW

012+3

2.248.133.818.7

esuopSdnaylredlEsedisebHHehtnielpoePrehtO.5emocnInraEohW

noS)s(rethguaD

)s(rethguad+)s(noSwal-ni-)s(noSnerdlihcdnarG

sretsis/srehtorBwal-ni-)s(nos/)s(rethguaDnoitanibmocrehto/srehtO

5.532.416.83.115.48.09.72.71

TTTTTABLE 6ABLE 6ABLE 6ABLE 6ABLE 6ELDERLELDERLELDERLELDERLELDERLY’S HOUSEHOLD INCOME STY’S HOUSEHOLD INCOME STY’S HOUSEHOLD INCOME STY’S HOUSEHOLD INCOME STY’S HOUSEHOLD INCOME STAAAAATUSTUSTUSTUSTUS

AND HEADSHIP RAAND HEADSHIP RAAND HEADSHIP RAAND HEADSHIP RAAND HEADSHIP RATESTESTESTESTES


50

00,20,40,60,8

11,21,41,61,8

Both Sexes Male Female

FIGURE 1FIGURE 1FIGURE 1FIGURE 1FIGURE 1MEAN NUMBER OF INCOME SOURCESMEAN NUMBER OF INCOME SOURCESMEAN NUMBER OF INCOME SOURCESMEAN NUMBER OF INCOME SOURCESMEAN NUMBER OF INCOME SOURCES

OF THE ELDERLOF THE ELDERLOF THE ELDERLOF THE ELDERLOF THE ELDERLY BY BY BY BY BY SEXY SEXY SEXY SEXY SEX

7205

106072

40073

25709

10000 10000

21273

0

20000

40000

60000

80000

100000

120000

Earnings from workPensionRentals, Savings, Real Estate, StocksFamily BusinessFarmIncome from children and other Relatives within the countryIncome from children and other Relatives outside the country

FIGURE 2FIGURE 2FIGURE 2FIGURE 2FIGURE 2MEDIAN ANNUAL INCOME OF ELDERLMEDIAN ANNUAL INCOME OF ELDERLMEDIAN ANNUAL INCOME OF ELDERLMEDIAN ANNUAL INCOME OF ELDERLMEDIAN ANNUAL INCOME OF ELDERLYYYYY

AND SPOUSE BAND SPOUSE BAND SPOUSE BAND SPOUSE BAND SPOUSE BY MOST IMPORY MOST IMPORY MOST IMPORY MOST IMPORY MOST IMPORTTTTTANTANTANTANTANTSOURCE OF INCOMESOURCE OF INCOMESOURCE OF INCOMESOURCE OF INCOMESOURCE OF INCOME


51

shifts could be a reflection of their withdrawal from the productive sectorand other economic opportunities as a result of the age restrictions inthe workplace as well as health factors. The foregoing findings is consistentwith the common expectations where care for the aged is a domesticrather than a state concern and that children are expected to care andsupport their ageing parents.

Among the varied sources of income for the elderly, income fromchildren/relatives within the country (29.9 percent), earnings from work(26.5 percent) and income from farm (22 percent) are considered mostimportant (Table 8). Compare this with their younger counterparts wherealmost half (46.3 percent) consider their work as their most importantincome source. The multiplicity of sources may be due to the low incomesderived from each source (Figure 2). Except for the few elderly whodepended on pensions, rentals, savings, real estate and stock where adecent level of income was exhibited, all other income sources registeredinsubstantial levels.

Gender differentials are likewise apparent. A greater proportion of malesconsider their work, farm and pension as their most important sourcesof income while more females depend on transfers particularly fromchildren and other relatives. The male advantage in pension is reflectiveof the historic male edge in the formal employment sector due to theireducational advantage although this may alter in the future consideringthe changing configuration of the education profile in favor of women.

The elderly in stable husband-wife family situation are economicallybetter off is reflected by the high proportion among them who declaredearnings from work and farm, as their main sources of income. Whilechildren/other relatives were cited as significant sources they aresecondary in importance. For their counterparts not in a husband-wifefamily arrangements (widowed and separated), they depend more ontransfers from children and other relatives. Quite expectedly, rural elderlyare more likely to rely on their farm for income support than their urbancounterparts (Table 8).

The foregoing income configuration confirms the elderly’s greaterdependence on familial rather than non-familial support. This is likewiseapparent from the low proportion relying on pensions. Although about atenth of the elderly, received some form of pension, a lower proportion(7.6 percent) stated that it is their major source of income (Tables 7 and8). This low proportion is also telling of the limited impact of existingpension and retirement benefits in the country.

vol. 56 nos.1-4, jan-dec 1999 PH

ILIPPINE S

OCIAL S

CIENCES R

EVIEW

52

EMOCNIFOSECRUOS

EGA +06GNOMA

95-05 +06 LATOT+05

XES ECNEDISER SUTATSLATIRAM

ELAM ELAMEF NABRU LARUR REVENDEIRRAM DEIRRAM DEWODIW /.VID

.PES

krowmorfsgninraE 6.35 5.92 3.04 4.63 7.42 3.62 0.23 0.13 6.23 5.42 9.64

noisneP 9.3 7.9 1.7 3.41 3.6 4.41 2.6 3.01 3.9 4.01 3.6

roytiunnamorfemocnIyapecnareves 0.1 7.0 8.0 2.1 4.0 1.1 4.0 - 2.1 2.0 -

laer,sgnivas,slatnermorFkcots,etatse 8.4 7.5 3.5 3.6 3.5 3.8 9.3 3.01 5.6 3.4 5.21

ssenisubylimafmorfemocnI 7.01 4.7 9.8 1.8 0.7 7.11 2.4 9.6 6.9 7.4 3.6

mrafmorfemocnI 5.43 0.13 6.23 6.83 6.52 4.22 6.73 7.6 1.83 6.32 0.52

rehtoronerdlihcmorfemocnIehtnihtiw,HHedistuosevitaler

yrtnuoc8.04 3.65 4.94 8.25 8.85 7.25 0.95 0.13 8.25 5.36 5.73

rehtoronerdlihcmorfemocnIseirtnuocrehtomorfsevitaler 6.01 2.81 8.41 4.61 5.91 6.12 6.51 8.31 0.81 3.91 7.9

TTTTTABLE 7ABLE 7ABLE 7ABLE 7ABLE 7PERCENT WHO RECEIVED INCOME FROM THE FOLLOWING SOURCESPERCENT WHO RECEIVED INCOME FROM THE FOLLOWING SOURCESPERCENT WHO RECEIVED INCOME FROM THE FOLLOWING SOURCESPERCENT WHO RECEIVED INCOME FROM THE FOLLOWING SOURCESPERCENT WHO RECEIVED INCOME FROM THE FOLLOWING SOURCES

BBBBBY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VARIABLESARIABLESARIABLESARIABLESARIABLES

ECO

NO

MIC W

ELL-BEING O

F THE F

ILIPINO E

LDERLY

Grace T. C

ruz

53

TNATROPMITSOMEMOCNIFOECRUOS

EGA+06GNOMA


95-05 +06 LATOT+05 ELAM ELAMEF NABRU LARUR REVEN

DEIRRAM DEIRRAM DEWODIW /.VIDPES

krowmorfsgninraE 3.64 5.62 5.53 8.03 2.32 0.42 3.82 8.43 5.72 4.32 0.25

noisneP 3.2 7.7 2.5 3.01 7.5 5.01 6.5 0.31 1.7 0.8 -

yapnoitarapeS/ytiunnA 1.0 4.0 2.0 4.0 3.0 - - - - - -

slatneR 2.1 0.2 6.1 6.1 4.2 9.2 5.1 7.8 3.2 5.1 0.2

ssenisubylimafmorfemocnI 3.6 0.5 6.5 3.5 9.4 8.7 9.2 7.8 3.6 4.3 -

mrafmorfemocnI 1.52 0.22 4.32 9.62 1.81 2.51 9.62 3.4 9.82 8.31 0.61

sevitaler/nerdlihcmorfemocnIyrtnuocehtnihtiw 0.41 9.92 7.22 2.02 5.73 2.03 8.92 4.03 3.12 2.24 0.02

sevitaler/nerdlihcmorfemocnIyrtnuocehtedistuo 7.4 5.6 7.5 5.4 0.8 6.8 9.4 - 0.6 7.7 -

LATOT 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001

TTTTTABLE 8ABLE 8ABLE 8ABLE 8ABLE 8MOST IMPORMOST IMPORMOST IMPORMOST IMPORMOST IMPORTTTTTANT SOURCE OF INCOME AMONG RESPONDENTS BANT SOURCE OF INCOME AMONG RESPONDENTS BANT SOURCE OF INCOME AMONG RESPONDENTS BANT SOURCE OF INCOME AMONG RESPONDENTS BANT SOURCE OF INCOME AMONG RESPONDENTS BY SELECTED BACKGROUND VARI-Y SELECTED BACKGROUND VARI-Y SELECTED BACKGROUND VARI-Y SELECTED BACKGROUND VARI-Y SELECTED BACKGROUND VARI-

ABLESABLESABLESABLESABLES


54

Children as sources of old age securityChildren as sources of old age securityChildren as sources of old age securityChildren as sources of old age securityChildren as sources of old age security

In an agricultural setting, high fertility tends to be the norm as childrenare viewed as a source of security during old age. This holds true amongthe Filipino elderly where high fertility and high dependence on childrenfor economic support are apparent. While a direct link between theirfertility and expectations of economic support from children cannot beclearly established in the data, indirect associations tend to point towardsthis direction.

The study reveals that 64.3 percent of elderly with at least 1 livingchild derived income from their children with 36.3 percent claiming theirchildren to be their main source of income (Table 9). Besides themonetary flow, children are also sources of non-monetary support (suchas food, clothing etc.) for the elderly. There appears to be a positive(though not monotonic) relationship between the number of livingchildren and the proportion of elderly who derive income from them. Athreshold level is observed (two living children) before which theproportion of support from children dramatically increases after whichno significant increase is apparent. Whereas the proportion who derivedincome from children is 32.1 percent among those who have only oneliving child, the proportion jumped to 59.4 percent among those withtwo living children. Similarly, the proportions who cited their children astheir most important source of income do not seem to vary significantlyafter the second living child. This threshold level has significantimplications on the fertility levels. It implies that one does not have tobear more than two children since economic returns beyond this numberis not substantially rewarding. Although this perception assumes a veryeconomic approach to the value of children, it may not be totally validin the Philippine culture where non-economic value of children prevails.

Generally, the study projects a very active flow of exchange betweenthe elderly and their children in both monetary and non-monetary terms.Although not quite pronounced, intra- rather than inter-householdexchanges seem more pronounced. The elderly regardless of sex aremore likely to receive support from their co-resident children as comparedwith their non-co-resident children (Table10). The female elderly are alsothe more likely recipients of monetary and non-monetary support fromtheir children compared to the male,- a finding which corroborates thefindings in a study in Singapore (Chan, 1997). This finding may reflectthe perception among” children that their mothers are in need of moresupport than their fathers.


55

REBMUNGNIVILFONERDLIHC

EVIREDOHW%MORFEMOCNI

NERDLIHC

RIEHTREDISNOCOHW%RIEHTSANERDLIHC

TNATROPMITSOMEMOCNIFOECRUOS

DEVIECEROHW%*YRATENOM-NON

MORFTROPPUSNERDLIHC

12345678+9

LATOT

1.234.951.758.758.265.963.377.262.173.46

5.729.632.239.922.935.530.930.041.736.63

2.171.784.393.885.970.191.091.681.983.78

XES SEXESHTOB

ELAM ELAMEF TNECREP REBMUN

nerdlihCtnediseR-oC.A

morfyenomdeviecerohw%-nerdlihctnediser-ocyna

tnacifingisynadeviecerohw%-tnediser-ocynamorftnuoma

yratenom-nondeviecerohw%-tnediser-ocynamorf*troppus

nerdlihc

9.38

5.42

2.48

1.88

4.42

1.29

3.68

4.42

7.88

)657(

)412(

)777(

nerdlihCtnediseroC-noN.B

morfyenomdeviecerohw%-nerdlihctnediseroc-nonyna

tnacifingisynadeviecerohw%-tnediseroc-nonynamorftnuoma

yratenom-nondeviecerohw%-tnediseroc-nonynamorf*troppus

nerdlihc

8.47

8.02

1.77

2.28

2.12

6.68

5.08

1.12

5.28

)1511(

)4511(

)4511(

* Food, Clothes

* Non-monetary support includes food, clothing or small items

TTTTTABLE 9ABLE 9ABLE 9ABLE 9ABLE 9MONETMONETMONETMONETMONETARARARARARY AND NON-MONETY AND NON-MONETY AND NON-MONETY AND NON-MONETY AND NON-MONETARARARARARY SUPPORY SUPPORY SUPPORY SUPPORY SUPPORT FROM CHILDRENT FROM CHILDRENT FROM CHILDRENT FROM CHILDRENT FROM CHILDREN

BY NUMBER OF LIVING CHILDRENBY NUMBER OF LIVING CHILDRENBY NUMBER OF LIVING CHILDRENBY NUMBER OF LIVING CHILDRENBY NUMBER OF LIVING CHILDREN

TTTTTABLE 10ABLE 10ABLE 10ABLE 10ABLE 10ELDERLELDERLELDERLELDERLELDERLY SUPPORY SUPPORY SUPPORY SUPPORY SUPPORT FROM CHILDRENT FROM CHILDRENT FROM CHILDRENT FROM CHILDRENT FROM CHILDREN


56

Ownership of Home, Land and other AssetOwnership of Home, Land and other AssetOwnership of Home, Land and other AssetOwnership of Home, Land and other AssetOwnership of Home, Land and other Asset

The study reveals a high rate of home and land ownership amongthe Filipino elderly This is significant since it represents not onlypossession of fixed assets but an additional source of income particularlyamong the urban poor communities where it is a common practice torent part of their space to generate income.

Table 11 reflects the home ownership among the elderly by selectedbackground variables. Data reveal a high rate of home ownership withalmost three quarters (74.3 percent) declaring ownership of their currentplace of residence. This level is net of those who declared joint-ownershipwith their children. Children of the elderly also reflect a high rate ofownership (13.1 percent) of the elderly’s current place of residence.Another 10 percent of the elderly claimed ownership of a house otherthan their current place of residence. This high level of home ownershipamong the old is a phenomenon apparently shared by other countriesin the region such as Thailand where the corresponding figure is 89percent.

Elderly males, rural residents and those who are married exhibit higherlevels of ownership of their current residence than their counterparts.The rural advantage may be a reflection of the relative availability andaccessibility of housing materials in these areas not to mention theabundance of land to build it on.

Compared to homeownership, a much lower proportion declaredownership of the land where their current residence stands (Table 12).Only about 64.9 percent of the older people claimed ownership to boththeir house and the lot where their residence is located (Table 13). Quitea significant proportion (about 18 percent) can be categorized as de factosquatters since their current residence is located either on a governmentor private property. This group represents a very vulnerable group ofelderly population who confront the perpetual threat of eviction and fearof losing their home.

As in the case of Thailand, the remarkably high ownership rate ofresidence can be explained by the common practice of transferringproperty after the death of the owner. Almost 9 out of 10 elderly in thestudy have not yet divided up their property and other assets amongtheir heirs at the time of the survey which could also reflect the elderly’sneed to hold on some tangible source of security in their old age (Figure 3).


57

FIGURE 3FIGURE 3FIGURE 3FIGURE 3FIGURE 3STSTSTSTSTAAAAATUS OF PROPERTUS OF PROPERTUS OF PROPERTUS OF PROPERTUS OF PROPERTY AND ASSETSTY AND ASSETSTY AND ASSETSTY AND ASSETSTY AND ASSETS

OF ELDERLOF ELDERLOF ELDERLOF ELDERLOF ELDERLY AND SPOUSEY AND SPOUSEY AND SPOUSEY AND SPOUSEY AND SPOUSE

As the results suggest, there is a very low transfer of property as parentsage which tends to highlight both the economic and emotional valueattached to inheritance in general. It is worthwhile to mention that inthe context of the Filipino culture, it seems unethical for a child to sellan inherited property particularly when the parents are still alive. Evenafter their parent’s death, it is a common practice to keep the propertyfor sentimental reasons and may not be disposed off unless one isconfronted with compelling financial constraints.

Besides house and lot, the study inquired into the elderly’s ownershipof other assets. Like income data, asset data were gathered using thecouple as the unit of analysis. A relatively low level of ownership is notedwith 41.3 percent (data not shown) of respondents having no other assetat all. For those who reported ownership of asset, a multiplicity ofownership is shown with each owning 1.3 assets on the average (Table14). The elderly showed high ownership of jewelry and appliances (40.7percent) followed by real estate properties (36.9 percent) (Table 15). Thelow ownership of cash savings with the male exhibiting an advantageaugurs well with the low income levels reported by the elderly.

Ownership of other assets is closely related with income level andsource (Tables 14 and 16). Results show that those who own other assets

5,8 4,8

89,4Not Yet DividedAll Divided among children or other relativesPartly Divided

89.489.489.489.489.4

4.84.84.84.84.85.85.85.85.85.8


ILIPPINE S

OCIAL S

CIENCES R

EVIEW

58

FORENWOECNEDISERTNERRUC

EGA+06GNOMA



DEIRRAM DEIRRAM DEWODIW /.PESVID

tnednopseResuopS

esuopSdnatnednopseRhtoBnerdlihcdnaesuops,tnednopseR

sgnilbisro/dnastneraPrethguad/noS

rotsecna/nalc/sevitalerrehtO*srehtO

8.220.39.659.12.53.25.34.4

9.337.17.830.37.11.312.37.4

9.823.28.645.22.33.83.37.4

1.031.12.051.21.13.97.24.3

5.632.24.037.30.29.518.35.5

2.330.22.438.33.31.119.45.7

4.435.11.244.24.07.411.25.4

7.62---0.323.34.336.31

4.516.28.563.22.10.72.25.3

4.758.05.70.40.14.129.20.5

1.35-1.31.31.38.813.65.21

LATOT 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001

esuohrehtonanwoohw% 8.11 0.01 8.01 0.11 5.9 7.01 6.9 5.6 0.01 4.01 4.9

TTTTTABLE 11ABLE 11ABLE 11ABLE 11ABLE 11OWNERSHIP OF CURRENT RESIDENCE BOWNERSHIP OF CURRENT RESIDENCE BOWNERSHIP OF CURRENT RESIDENCE BOWNERSHIP OF CURRENT RESIDENCE BOWNERSHIP OF CURRENT RESIDENCE BY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VARIABLESARIABLESARIABLESARIABLESARIABLES

* Includes government or employer; son-in-laws, non-relatives, donations etc.

** 82.8% of elderly claimed to have built their own house 71.6% of elderly can either sell or mortgage house currently residing

% renting in urban areas = 5.1%

ECO

NO

MIC W

ELL-BEING O

F THE F

ILIPINO E

LDERLY

Grace T. C

ruz

59

DNALFORENWONOSEVILREREHW

EGA+06GNOMA



DEIRRAM DEIRRAM DEWODIW /.PESVID

tnednopseResuopS

esuopS&tnednopseRnerdlihc&esuops,tnednopseR

rethguad/noSsthgirhtiwdenwotnemnrevoG

sthgirtuohtiwdenwornemnrevoGtoltnacav/etavirP

gnitneRsrotsecna/nalC

rehto/sevitalerrehtO

9.517.63.233.09.07.17.59.99.69.48.41

1.428.42.420.15.75.27.57.97.46.32.21

5.026.58.727.05.41.27.58.97.52.44.31

2.028.36.136.09.41.23.55.012.48.30.31

9.626.50.914.12.97.20.61.92.53.36.11

2.320.66.121.17.73.36.69.70.87.29.11

9.428.33.620.13.77.10.51.111.22.46.21

3.6-----4.93.63.65.212.95

5.210.66.043.08.32.20.66.010.47.36.01

6.933.36.51.25.211.36.51.96.57.28.01

0.047.6--0.01--0.017.67.69.91

LATOT 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001

TTTTTABLE 12ABLE 12ABLE 12ABLE 12ABLE 12OWNERSHIP OF LOWNERSHIP OF LOWNERSHIP OF LOWNERSHIP OF LOWNERSHIP OF LAND WHERE R LIVES ONAND WHERE R LIVES ONAND WHERE R LIVES ONAND WHERE R LIVES ONAND WHERE R LIVES ON


60

particularly cash savings are more likely to exhibit higher income levelscompared to those who declared not owning assets. Those who reportedrentals and family business as their most important source of incomealso exhibit the highest ownership of other assets while those relying onchildren/relatives for their subsistence exhibited the lowest rate of otherasset ownership while owning one asset on the average. This presentsthe diversity in the income levels of the elderly with some economicallybetter off sector although the majority are generally experiencingeconomic deprivation.

Debts and ExpendituresDebts and ExpendituresDebts and ExpendituresDebts and ExpendituresDebts and Expenditures

Given the tight financial state that the elderly find themselves in, it isnot surprising to note that a good number of them registered somefinancial liability. The elderly are less likely to incur debts compared totheir near-elderly counterparts. Whereas 38.7 percent among the elderlyclaimed to have some debts, the corresponding figure is 57.6 percentfor the near-elderly (Figure 4). Differential analysis also reveals theeconomically better-off sector of the elderly population are more likelyto be indebted. While the reverse pattern may be expected, the findingsseem more rational in the sense that those with higher income and assetsare more creditworthy and thus are more likely to be given access toloans and credits.

DNALFORENWONOEVILYLTNERRUC

ESUOHFO)S(RENWO

esuopS,RhtoBro

esuopS,RnerdlihC&

/noSrethguaD LATOT

htoBroesuopS,tnednopseR-nerdlihCdnaesuopS,tnednopseR-

sthgirhtiwdenwotnemnrevoG-sthgirtuohtiwdenwotnemnrevoG-

gnitneR-tnacav/etavirP-

srehtO/sevitalerrehtO-

9.468.28.15.51.39.90.21

4.745.816.26.29.75.015.01

5.429.245.68.40.35.68.11

1.354.84.27.57.46.91.61

LATOT 0.001 0.001 0.001 0.001

TTTTTABLE 13ABLE 13ABLE 13ABLE 13ABLE 13PERCENT DISTRIBUTION OF ELDERLPERCENT DISTRIBUTION OF ELDERLPERCENT DISTRIBUTION OF ELDERLPERCENT DISTRIBUTION OF ELDERLPERCENT DISTRIBUTION OF ELDERLY BY BY BY BY BY OWNERSHIP OF HOUSEY OWNERSHIP OF HOUSEY OWNERSHIP OF HOUSEY OWNERSHIP OF HOUSEY OWNERSHIP OF HOUSE

CURRENTLCURRENTLCURRENTLCURRENTLCURRENTLY LIVE ON AND THEIR LY LIVE ON AND THEIR LY LIVE ON AND THEIR LY LIVE ON AND THEIR LY LIVE ON AND THEIR LAND LIVE ONAND LIVE ONAND LIVE ONAND LIVE ONAND LIVE ON


61

EMOCNIFOECRUOSTNATROPMITSOM TNECREP REBMUNNAEMSTESSAFO

krowmorfsgninraEnoisneP

yapnoitarapes/ytiunnAslatneR

ssenisubylimafmorfemocnImrafmorfemocnI

yrtnuocehtnihtiwsevitaler/nerdlihcmorfemocnIyrtnuocehtedistuosevitaler/nerdlihcmorfemocnI

5.652.870.577.595.987.764.747.67

2.18.14.24.24.25.19.06.1

LATOT 7.16 3.1

TTTTTABLE 14ABLE 14ABLE 14ABLE 14ABLE 14PERCENT OF ELDERLPERCENT OF ELDERLPERCENT OF ELDERLPERCENT OF ELDERLPERCENT OF ELDERLY WITH AY WITH AY WITH AY WITH AY WITH AT LEAST ONE “T LEAST ONE “T LEAST ONE “T LEAST ONE “T LEAST ONE “OTHEROTHEROTHEROTHEROTHER” ASSET” ASSET” ASSET” ASSET” ASSET

OHWYLREDLEFOTNECREPGNIWOLLOFEHTEVAH

STESSA"REHTO"

XES

ELAM ELAMEF

etatselaeRsgnivashsaC

seirehsifromraf,ssenisubanitseretnIsecnailppa,yrleweJ

9.633.218.027.04

2.337.82.916.04

TTTTTABLE 15ABLE 15ABLE 15ABLE 15ABLE 15OTHER ASSETS OF ELDERLOTHER ASSETS OF ELDERLOTHER ASSETS OF ELDERLOTHER ASSETS OF ELDERLOTHER ASSETS OF ELDERLY OF THE FILIPINO ELDERLY OF THE FILIPINO ELDERLY OF THE FILIPINO ELDERLY OF THE FILIPINO ELDERLY OF THE FILIPINO ELDERLY BY BY BY BY BY SEXY SEXY SEXY SEXY SEX

FIGURE 4FIGURE 4FIGURE 4FIGURE 4FIGURE 4PERCENT WITH DEBT BY LEVELPERCENT WITH DEBT BY LEVELPERCENT WITH DEBT BY LEVELPERCENT WITH DEBT BY LEVELPERCENT WITH DEBT BY LEVEL

AMONG ELEDERLAMONG ELEDERLAMONG ELEDERLAMONG ELEDERLAMONG ELEDERLY AND MEAN ELDERLY AND MEAN ELDERLY AND MEAN ELDERLY AND MEAN ELDERLY AND MEAN ELDERLYYYYY

Perc

ent

with

deb

t 38,7

57,6

010

20

3040

50

60

Elderly Mean Elderly

38.7

57.6


62

Sources of debts indicate the elderly’s greater dependence oninformal rather than formal sources. This is reflected by the popularityof the sari-sari store as their credit source (Table 17). Sourcespersonally known to them including relatives and friends are likewiseapproached in times of financial want. Only a few have access tothe formal sources such as banks (6.4 percent), GSIS/SSS (0.5 percent) or cooperatives (2.5 percent) which may be due to the difficulty ofsecuring the necessary requirements and the need for some collateral.That some elderly are more likely to approach a usurer (3.1%) thanthe formal sources of credit is a clear indication of the inaccessibilityof the latter as a source of support. It is significant to mention that asubstantial proportion of the elderly rely not just on one but acombination of these financial sources.

The study inquired about the level of expenditures and how these werehandled in relation to available income. Although income andexpenditures have different time frames with the income variable takenannually, expenditures was estimated on a monthly basis. Adjustmentswere made to make them comparable. Another limitation of theseestimates was that income was taken for the year prior to the surveywhile expenses refers to the year the survey was conducted. Estimateswere likewise affected by the seasonality of expenditures which couldaffect the figures provided.

STESSA.FFEHTFOPIHSRENWO ELAM ELAMEF

etatselaeRnwO

nwotoN000,02000,01

004,41000,9

sgnivashsaCnwO

nwotoN718,84000,21

425,34000,01

yrehsifromraf,ssenisubaniteseretnInwO

nwotoN829,42000,21

992,61000,01

selbaulavrehtodnasecnailppa,yrleweJnwO

nwotoN000,42000,01

082,71485,6

TTTTTABLE 11ABLE 11ABLE 11ABLE 11ABLE 11OWNERSHIP OF CURRENT RESIDENCE BOWNERSHIP OF CURRENT RESIDENCE BOWNERSHIP OF CURRENT RESIDENCE BOWNERSHIP OF CURRENT RESIDENCE BOWNERSHIP OF CURRENT RESIDENCE BY SELECTED BACKY SELECTED BACKY SELECTED BACKY SELECTED BACKY SELECTED BACK-----

GROUNDGROUNDGROUNDGROUNDGROUND

TTTTTABLE 16ABLE 16ABLE 16ABLE 16ABLE 16MEDIAN INCOME OF ELDERLMEDIAN INCOME OF ELDERLMEDIAN INCOME OF ELDERLMEDIAN INCOME OF ELDERLMEDIAN INCOME OF ELDERLY AND SPOUSE BY AND SPOUSE BY AND SPOUSE BY AND SPOUSE BY AND SPOUSE BY OWNERSHIP OFY OWNERSHIP OFY OWNERSHIP OFY OWNERSHIP OFY OWNERSHIP OF

ASSETS AND SEX OF ELDERLASSETS AND SEX OF ELDERLASSETS AND SEX OF ELDERLASSETS AND SEX OF ELDERLASSETS AND SEX OF ELDERLY AGEY AGEY AGEY AGEY AGE


63

Generally, pooling of HH resources is the most acceptable mode ofmanaging HH resources with no apparent differential across certainbackground characteristics (Table 18). About 45 percent of the elderlypool their family income while 28.6 percent manage expenses using acombination of pooling and assigning expenses among HH members.Pooling is particularly more apparent in rural and intact HHs. Malerespondents are also more likely to claim pooling their resources. Lesspooling is observed among HH members of never married and divorcedrespondents. Compared to the elderly, the near-elderly HH are morelikely to pool their resources rather than cover assigned expenses. Thismay be due to the fact that the former are more likely to have childrenwho have reached employment ages and therefore are ready to assumecertain economic responsibilities.

Pooling of resources indicates a more cooperative way by which theHH needs are met. Such approach seems a logical coping mechanismfor an economically unstable group since economically dependentmembers can benefit from the support of the economically better-offmembers. Elderly respondents who claimed to pool their HH incomereported a median pooled income of P3,000 which is just enough tocover their monthly cost of operating the HH (data not shown). Mostof the HH expenditures (about 89 percent) are spent on food implyingthat incomes are so low that they are mostly dedicated for the satisfaction

MORFYENOMDEWORROB 95-05 +06

evitaleRdneirF

erotsiras-iraS)xis-evif(rerusU

knaBSSS/SISG

evitarepooCseirogetacevobaehtfoynafonoitanibmoc/srehtO

4.119.99.921.45.70.39.43.92

3.216.90.831.34.65.05.26.72

LATOT 0.001 0.001

TTTTTABLE 17ABLE 17ABLE 17ABLE 17ABLE 17PERSON FROM WHOM ELDERLPERSON FROM WHOM ELDERLPERSON FROM WHOM ELDERLPERSON FROM WHOM ELDERLPERSON FROM WHOM ELDERLY BY BY BY BY BORROWED MONEYORROWED MONEYORROWED MONEYORROWED MONEYORROWED MONEY


ILIPPINE S

OCIAL S

CIENCES R

EVIEW

64

GNIGANAMFOEDOM*EMOCNIDLOHESUOH

+06GNOMA

XES XES


DEIRRAM DEIRRAM DEWODIW PES/.VID

emocnIlooPsesnepxedengissarevoC

dengissaemosdnagniloopemoS

9.946.915.03

8.146.926.82

1.546.524.92

5.641.924.42

8.830.032.13

9.638.823.43

8.546.036.32

5.733.133.13

3.441.626.92

0.048.232.72

3.135.733.13

LATOT 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001

TTTTTABLE 18ABLE 18ABLE 18ABLE 18ABLE 18MODE OF MANAGING HOUSEHOLD INCOME TO MEET HOUSEHOLD EXPENDITURESMODE OF MANAGING HOUSEHOLD INCOME TO MEET HOUSEHOLD EXPENDITURESMODE OF MANAGING HOUSEHOLD INCOME TO MEET HOUSEHOLD EXPENDITURESMODE OF MANAGING HOUSEHOLD INCOME TO MEET HOUSEHOLD EXPENDITURESMODE OF MANAGING HOUSEHOLD INCOME TO MEET HOUSEHOLD EXPENDITURES

BBBBBY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VARIABLESARIABLESARIABLESARIABLESARIABLES

* Asked only of respondents where there are other income earner in the HHbesides Respondents and Spouse.

P3,000 - median monthly pooled household income.


65

of the most basic necessity. Contrast this with the 1994 Family Incomeand Expenditure. Survey (FIES) which reported a 47.8 percent share oftotal food expenditures to total expenditures for the entire country. Thedifference is clearly an indication of the the relatively lower economicstanding of older people vis- a-vis national standards.

A significant proportion of the elderly contribute to the HH of theoperating expenditures. While in absolute terms, their contribution maybe considered low, in relative terms this is substantial. Their monthlymean contribution of P1,517 cover more than half (53.8 percent) ofthe monthly HH operating expenses while the corresponding figuresfor the near-elderly are P2,052/month and three quarters (75.1percent), respectively (Table 19). Clearly, even with low incomes, theolder people are still bringing in significant help and assistance for thesustenance of their HH.

The amount of contributions that the elderly make for their HHexpenditures is associated with age and their source of income. Elderlycouples contribute significantly less than their near-elderly counterparts(Table 19). Contribution to HH expenditures is also dependent on theirmost important source of income. Those with very stable incomes (e.g.annuity and family business) reported the highest levels of financialcontribution while the less financially well-off groups such as thosewho depend on their children reported the lowest level of contribution(Figure 5). What is significant to note is the latter’s ability to contributedespite their apparently low and unstable incomes. Perhaps thisprovides a glimpse of the Filipino elderly’s notion of well-being whichis not only limited to his/her personal welfare but encompassing thatof the entire family or HH. This concept seems to explain the activeintergenerational flow of resources observed in the elderly HHs. Suchnetwork of support likewise reflects the elderly’s role as a mechanismor conduit for the redistribution of family income in order to maximizeoverall family well-being. In a sense, the elderly by serving as achannel for family resources serves as an economic broker for theentire family.

When the elderly were asked about their perception regarding theirHH financial status, they seem to project a poor economic condition.Majority claimed to be facing considerable difficulty in meeting their HHexpenses. About 30 percent declared to have just enough means tofoot their bills while a low proportion (8.9 percent) reported relativeease in meeting their HH expenditures (Figure 6).


66

EGA snoitubirtnoCnaeM)P(htnoM/esuopS&Ryb

ybedaMnoitubirtnoCHHotesuopS&ylredlE

gnitarepOylhtnoM)%(sesnepxE

erutidnepxEylhtnoMfon'porPasadooFno

gnitarepOHHlatoTHHs'RnierutidnepxE

95-05+06

07.150,262.715,1

1.578.35

7.881.98

LATOT 32.098,1 18.36 9.88

TTTTTABLE 19ABLE 19ABLE 19ABLE 19ABLE 19ELDERLELDERLELDERLELDERLELDERLY’S CONTRIBUTION TO HOUSEHOLD EXPENSESY’S CONTRIBUTION TO HOUSEHOLD EXPENSESY’S CONTRIBUTION TO HOUSEHOLD EXPENSESY’S CONTRIBUTION TO HOUSEHOLD EXPENSESY’S CONTRIBUTION TO HOUSEHOLD EXPENSES

Farm

Family Business

Rentals/Savings

Annuity

Pension

Work

0 500 1000 1500 2000 2500 3000 3500 4000

FIGURE 5FIGURE 5FIGURE 5FIGURE 5FIGURE 5ELDERLELDERLELDERLELDERLELDERLY’S MEDIAN CONTRIBUTION TOY’S MEDIAN CONTRIBUTION TOY’S MEDIAN CONTRIBUTION TOY’S MEDIAN CONTRIBUTION TOY’S MEDIAN CONTRIBUTION TO

HOUSEHOLD EXPENDITURES BHOUSEHOLD EXPENDITURES BHOUSEHOLD EXPENDITURES BHOUSEHOLD EXPENDITURES BHOUSEHOLD EXPENDITURES BY MOST IMPORY MOST IMPORY MOST IMPORY MOST IMPORY MOST IMPORTTTTTANTANTANTANTANTSOURCE OF INCOMESOURCE OF INCOMESOURCE OF INCOMESOURCE OF INCOMESOURCE OF INCOME

C o n s id e r a b le d if f ic u lt y in m e e t in g e x p e n s e s

3 8 %

J u s t e n o u g h t o p a y

e x p e n s e s w it h n o

d if f ic u lt y3 0 %

T h e r e 's e n o u g h m o n e y

le f t o v e r8 ,9 %

S o m e d if f ic u lt y in

m e e t in g e x p e n s e s

2 3 ,1 %

FIGURE 6FIGURE 6FIGURE 6FIGURE 6FIGURE 6ELDERLELDERLELDERLELDERLELDERLY PERCEPTION REGARDINGHOUSEHOLDY PERCEPTION REGARDINGHOUSEHOLDY PERCEPTION REGARDINGHOUSEHOLDY PERCEPTION REGARDINGHOUSEHOLDY PERCEPTION REGARDINGHOUSEHOLD

INCOME AND EXPENDITURESINCOME AND EXPENDITURESINCOME AND EXPENDITURESINCOME AND EXPENDITURESINCOME AND EXPENDITURES


67

The extent of the financial burden of the elderly is likewise picturedin the high proportion who claimed some concern about their finances.About 80 and 67 percent of the near-elderly and elderly, respectivelyworried about their financial status (Table 20). Despite the elderly male’sincome advantage, a greater proportion among them expressed concernregarding their financial status compared with their female counterparts.This could be an expression of the pressure they feel as the mainbreadwinner of the families. A higher proportion of ruralites as well asthe divorced/separated were also noted to feel a greater financial pinch.

A deeper understanding of the elderly’s poor self-assessment withrespect to their economic well-being seems to be an expression of thefamily’s economic condition. Such altruistic nature of the elderly isagain reflected in the high proportion (64 percent) among them whoexpressed concern that their children did not have better economiclives. This finding is consistent with the altruism hypothesis advanced

SELBAIRAV

EDUTITTA/NOITPECREP

asawItlefIsrehtootnedrub

ymtuobadeirrowIsutatslaicnanif

deneddas/deirrowItondidnerdlihcymtaht

yllacimonoceevahsevilretteb

egA95-05

+06+05latoT

3.814.522.22

4.082.762.37

1.462.461.46

)+06(xeSelaM

elameF9.221.72

2.072.56

3.265.56

)+06(ecnediseRnabrUlaruR

5.422.62

9.460.96

3.265.56

)+06(sutatSlatiraMdeirraMreveN

deirraMdewodiW

detarapeS/decroviD

3.932.225.823.23

0.064.768.664.77

-2.563.363.35

TTTTTABLE 20ABLE 20ABLE 20ABLE 20ABLE 20ELDERLELDERLELDERLELDERLELDERLY PERCEPTION/AY PERCEPTION/AY PERCEPTION/AY PERCEPTION/AY PERCEPTION/ATTTTTTITUDE TOWTITUDE TOWTITUDE TOWTITUDE TOWTITUDE TOWARDS THEIR ECONOMICARDS THEIR ECONOMICARDS THEIR ECONOMICARDS THEIR ECONOMICARDS THEIR ECONOMIC

STSTSTSTSTAAAAATUS BTUS BTUS BTUS BTUS BY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VY SELECTED BACKGROUND VARIABLESARIABLESARIABLESARIABLESARIABLES


68

by Becker (in Lillard and Willis, 1997) which posits that family membershave altruistic feelings towards one another as a key ingredient inexplaining many aspects of family behavior. The feeling of being a burdento others may also be related to economic concerns. While in the contextof the Philippine culture children are expected to take care of theirparents in their old age, some parents do not seem very comfortablewith such an arrangement as manifested by their feeling of being aburden to their children.

CONCLUSION

Demographic transitions in our country, the historical decline in mortalityand fertility have fashioned an irreversible future scenario marked by anincreasing number and proportion of elderly population in the Philippines.Besides this quantitative change, the future generation of elderly willalso project a different qualitative profile than their forebears. As aconsequence of past policies towards expanding educationalopportunities, the incoming cohort of elderly will be better educated andthus are expected to be more active in the labor force. Concomitantwith this is the expected gains in health condition marked by theirincreasing longevity. Thus the future elderly will be expected to outlivetheir predecessors. While the improved longevity particularly amongwomen is a reason to celebrate, it nevertheless poses serious healthimplications knowing that health needs progress with advancing age.

These quantitative and qualitative shifts are important to recognizeinsofar as they impinge on the economic well-being of our elderly.Current data indicate that despite the seemingly structural advantageof the Filipino elderly(e.g., almost a universal proportion are intimatelyconnected with their families either by living together or via monetaryand non-monetary support) they are in a precarious economic condition.In the 1996 PES, they reported very low levels of income, much lowerthan the poverty threshold reported in the country for the same period.This outcome is quite expected considering that most of them dependon transfers from their children for their main source of income. Earningsfrom work and farm, albeit also an important source of revenue to manyappears secondary in importance. Only about a tenth were recipients ofpension pay which validates the fact that care for the elderly in thecountry rests largely in the hands of the family than that of the state.

Faced with economic constraints, a good number of the older personscontinue to eke out a living to support not only themselves but other


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members of their HH. Except those working in the formal sector whoare severed from the labor force involuntarily, it is likely that many ofthem especially those in the primary sector will continue working perhapsuntil such time that an alternative mechanism of support is available.While their sustained participation in the LF has its gains, its impact ontheir health condition must not be overlooked. This assumes significancein the face of an apparent lack of health care safety nets for the elderlyin the country, indexed further by the lack of available gerontologicalhealth facilities as well as low health insurance coverage.

The active inter-generational exchange support noted in the study isproof that the elderly is not only a recipient but a provider of support aswell—their low economic status notwithstanding. The significantproportion among them remain in the position of HH head makes theolder person occupy a central position in the web of familial exchangeof support. Indeed, this proves the elderly to be an economic asset ratherthan a burden as they are normally pictured. It would seem thatcontinuous and selfless investment that the elderly pour on the otherHH members is at the same time a preparation for their old age. Byinvesting on the younger generation in terms of good relationship andservice, the elderly are provided with a sense of security about their future,trusting that the goodness they sow will be reaped in their twilight years.In this way, the elderly can find and derive meaning in the state of lifethat they find themselves in.

This view of the elderly as ‘assets’ in society should not distract usfrom the ‘not so rosy’ economic condition that a majority of them findthemselves in. This is primarily because the study shows how theeconomic woes are linked with despondency. This suggests that so muchmore has to be done to give our elderly a satisfying life. Providinganswers to their economic vulnerability is just the initial step towardsthis end. The results of this study depicting the economic burden facedby the elderly therefore provides a challenge primarily to the governmentin terms of making the necessary preparations to face the increasingneeds of our future ageing population. As the world in general(particularly the developed world) is poised to meet the needs of thisemerging demographic phenomenon, the Philippine government (andNGOs as well) response should be no less. This is important particularlysince the study notes that the economic burden is closely interrelatedwith other elderly concerns such as health, psychological and socialfactors which are essential elements in defining overall well-being.


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Documents

Economic Well-being of the Filipino Elderly*