Slovakia’s population has been aging rapidly and the working-age population is expected to shrink in the next 30 years. Many senior adult pensioners in Slovakia and Eastern European countries anticipate retirement. Unfortunately, these “younger old” (aged 65 to 74) Senior Slovakian residents will face financial discrepancies that may affect their future “quality of life.” As the aged population in Slovakia grows, poverty and social exclusion are issues that could sway how seniors utilize their anticipated pension package. Some “older young” seniors extend their retirement by working longer or becoming self-employed (own-account workers) to increase their income. Human health and social work industries are popular areas of employment. At the same time, other pensioners draw from investments to increase their income. Unfortunately, this is not an option for many seniors.

Socioeconomic Situation of Slovakia

Poverty in Slovakia “is not only a matter of lack of money.” The number of persons at risk of poverty rate (AROP), severe material deprivation and the number of people living in households with very low work intensity are indicators Slovakia uses when forming policy measures to increase employment, reduce long-term jobs and reduce poverty and social exclusion.

However, according to the Organization for Economic Cooperation (OECD), about 74% of all pensions are below the monthly minimum wage. This leaves 500,000 (2021 estimate) Slovakian pensioners living below the poverty line. This number increased by 200,000 in 2022. Social, employment, health and education reforms are crucial to offset the pressures poverty places on pensioners. A large number of pensions were established during the mid-20th century.

At that time, life expectancy was shorter: 66 for men and 71 for women. Today, the government needs to support pensioners living in their 80s and 90s. So, considering a rising life expectancy and a declining fertility rate, the old-age dependency ratio is anticipated to increase.

Elderly persons’ poverty and social exclusion degree depend on their cohort (i.e., single adult, married with one child and so on) and the region in which they reside. One-third of older people in Central, Western, Eastern and Bratislava regions experience severe poverty. These areas are poorer because of weak business development, poorly developed infrastructure and lower levels of education.

Social Exclusion vs Dignity

According to the OECD, the Slovak Republic’s poverty rate for people aged more than 65 is between 3% and 4%. The retirement income is less than half the national median household disposable income. Hence, a retirement pension assures the elderly population of Slovakia that they “lack the financial resources and essentials for a minimum standard of living,” in short, “poverty.”

The percentage of people with AROP and social exclusion in December 2023 was 3.8%. The Slovak population’s social exclusion can be observed through health and access to health care, poverty and material deprivation, housing, local environment and interpersonal relations. Some senior adults who are unemployed, have limited education and live in single-parent and multi-child households are at the greatest risk of experiencing social exclusion in Slovakia.

Social exclusion unveils the multidimensional nature of poverty. However, being severely materially deprived, living in a jobless household and having a limited education do not qualify as being socially excluded from the dignity of an individual’s position within society.

Assisting Organizations and Programs

1. Slovakian Social Services supports pensioners and people with severe disabilities. It “designs legislation concerning social insurance and pensions” to ensure a just redistribution of pensions in the National Economy.
2. The Social Security Act of 2014 aims to tackle poverty and social exclusion among senior citizens by providing them with social protection. The act includes the following provisions: health care benefits, social insurance, state social support and social assistance. These rights and obligations ensure that seniors have access to the necessary resources to lead a dignified life.
3. The European Union (EU) is planning to allocate a significant portion of the European Social Fund Plus (ESF+) resources to mitigate the socioeconomic impact of COVID-19 on Slovakia and to achieve the EU’s social targets by 2030. These targets include reducing poverty and social exclusion by 70,000 individuals by 2030.

Conclusion

Slovakia is a relatively prosperous country but faces challenges in fighting poverty and social exclusion. One of the main challenges is the aging population, which cannot be addressed quickly. As the proportion of older people increases, Slovakian society will need to adapt to the economic, social and political consequences that come with it. This will require essential reforms in social welfare, employment, health and education.

– Pamela Fenton

Pamela is based in Wall Township, NJ, USA and focuses on Global Health and World News for The Borgen Project.

Photo: Unsplash