Chapter 3

[Schuey]

Flashcard 21
Give 3 reasons why pension may be insufficient to meet the needs of individual in extreme old age ?

Point 1.
What would examples be of "additional costs of buying in services as person becomes less able" ?
Would this be cleaner, cook, carer ?

Point 2.
Why would the pension of surviving female spouse may have reduced significantly ?

Thanks very much

 

[charly27]

Hi, my understanding is below....

What would examples be of "additional costs of buying in services as person becomes less able" ?

This might be due to rising need to buy in services such as nursing care or cleaners yes, anything that an elderly person would be less able to do than a newly retired person


Why would the pension of surviving female spouse may have reduced significantly ?
A female would typically have worked for less years than her husband (eg if took time off to raise children) and so would have a lower pension than her husband. So a surviving female spouse would have a lower income than a surviving male spouse. Another point on this topic is that after the death of a spouse the total household income for a surviving female will have reduced by more than half but living costs such as gas/electric etc won't have halved so the surviving spouse will have less money overall to be able to afford things like care?

Hope that helps

 

[Schuey]

Thanks very much that helps a lot