Elderly poverty in Andorra poses challenges, but also opens the door for innovation. By focusing on disease prevention, healthy aging and stronger social protections, the country can reduce health care costs while empowering seniors to stay active and valued. This can only be possible with strategic reforms. Andorra is set to lead Europe in building a sustainable, dignified future and demographic change.

Elderly Poverty in Andorra

 In Andorra, about 22% of retirees – people aged 65 and older — are considered at risk of poverty. That is higher than the overall poverty risk of 13%. Without social benefits, the elderly poverty rate could climb nearly 30%.

Several factors contribute to this elevated risk of elderly poverty. One key issue is inequality in the pension system as many long-term contributors receive contributory pensions below the minimum wage (currently around 1,431 euros each month), whereas non-contributory solidarity pensions can be significantly higher—sometimes even three times as much—creating unfair disparities among retirees.      

Experts have predicted that the elderly age group in Andorra will increase at the quickest rate in Europe due to rising life expectancy and falling fertility. In the absence of improvements, Andorra’s health care and pension spending will likely rise 8.8 percentage points of GDP by 2050 compared to 2022. This increase may severely strain state finances, necessitating changes to other spending, an increase in revenue, or a rise in the national debt. Any nation must make these kinds of adjustments, but a microstate like Andorra, which is more prone to shocks, will likely find it especially difficult. 

Health Care in Andorra

In 2022, adults 65 and older made up 15% of Andorra’s population — among the lowest shares in the EU — but the figure is expected to climb to 37% by 2050, the highest among its peers, U.N. data shows. The shares for residents 80 and older is projected to rise from 4% to 13% in the same period, driving up health care costs, as this age group spends more than three times its population share on care, according to CASS.

Early disease detection and prevention can reduce health care costs, especially as Andorra’s growing elderly poverty requires more care. By promoting healthy aging and expanding prevention programs, like routine checks, the country can improve productivity, extend working years, strengthen pensions and limit medical expenses.

Pensions in Andorra

Andorra’s government is proposing a minimum pension for contributory pensions that is equal to the minimum wage to help address elderly poverty. Prerequisites for the pension are that applicants have contributed to it for at least 40 years and have not chosen to retire early.

On June 1, 2025, the Andorran government chose to boost the pension for low-income retirees and raised Social Security pensions that fell below the minimum inter-professional wage by 3.67%. Individuals who have contributed for at least 25 years will qualify for retirement pensions, and widows’ and widowers’ pensions. The government also offers pensions for illnesses related to work, and disability pensions for both occupational and non-occupational accidents. for common work-related illnesses.

The Takeaway

Andorra’s aging population, while challenging, presents an opportunity for reform and growth. By investing in prevention, promoting healthy aging and aligning pensions with the minimum wage, the country can protect vulnerable seniors, lower the risk of elderly poverty in Andorra, reduce health care costs and extend workforce participation. With smart planning, these measures could turn demographic pressures into sustainable and dignified models, positioning Andorra as a leader in adapting to Europe’s demographic shifts. 

– Joshua Pettis

Joshua is based in Houston, TX, USA and focuses on Global Health and Celebs for The Borgen Project.

Photo: Unsplash