Poverty by Age

Children are over-represented in poverty in most countries — sometimes by 1.5-2× the adult rate. Elderly poverty rates vary much more across countries — from under 5% in countries with generous pensions to over 25% in some emerging markets and the US. Working-age poverty is concentrated among the unemployed, single parents, and gig-economy workers.

~16%
OECD child poverty rate (median)
~12%
OECD elderly poverty rate (median)
~9%
OECD working-age poverty rate
Highest
US, Korea elderly poverty among OECD

Key insights

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Child poverty exceeds adult poverty in most OECD

OECD median child poverty: ~16%. Working-age: ~9%. Elderly: ~12%. Children's higher rates reflect: large families have more mouths to feed per earner, single-parent households are common, family benefits are sometimes inadequate. Nordic countries close the gap with generous family benefits; Mediterranean countries have larger gaps. US child poverty rose sharply when 2021 Child Tax Credit expansion expired.

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Elderly poverty depends heavily on pensions

Countries with generous public pensions have low elderly poverty: France 4%, Netherlands 4%, Denmark 5%, Norway 4%. Countries with mandatory funded pensions also do well. Korea (40% elderly poverty), Estonia (35%), US (23%) have high elderly poverty — reflecting limited public pension coverage and/or low replacement rates. Elderly poverty is highly responsive to pension system design.

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Working-age poverty concentrates in specific groups

Working-age poverty isn't uniformly distributed: single parents (35%+ poverty rate), unemployed (50%+), workers with low earnings and family responsibilities, gig-economy workers, recent immigrants. Cumulative employment over a year matters more than spot snapshots. EITC (US), Universal Credit (UK), prime d'activité (France) are designed to address working-poor; effects vary by program generosity.

Poverty rate by age group — selected OECD countries

% at-risk-of-poverty (below 50% median income)

Key Finding: US has elevated child and elderly poverty; Northern Europe shows compressed age-related poverty.

Source: OECD Income Distribution Database 2024

Elderly poverty rate — selected OECD countries

% of 66+ population below 50% median income

Key Finding: Korea and Estonia have the highest elderly poverty in OECD; France, Norway, Denmark lowest.

Source: OECD Pensions at a Glance 2024

Methodology & caveats

Relative vs absolute poverty

Most OECD comparisons use relative poverty (% below 50% or 60% of median income). Cross-country comparisons can use absolute thresholds (PPP-adjusted), but these are less standard for OECD comparisons. The relative measure captures inclusion in living standards but not absolute deprivation. World Bank uses absolute thresholds ($2.15, $3.65, $6.85/day PPP) for global comparisons.

Why children show higher poverty

Child poverty is mechanically higher because: large households with more dependents per earner, single-parent households disproportionate (90%+ headed by women), young parents have lower earnings, families with young children face childcare costs that reduce earnings. Family benefits and child allowances can offset this; OECD countries that maintain generous family benefits have substantially lower child poverty than peers.

Korea's elderly poverty puzzle

Korea's 40% elderly poverty rate is the highest in OECD despite rapid economic growth. Causes: public pension system is relatively new (introduced 1988, expanded gradually), low replacement rates, traditional family-support assumptions that have weakened, rapid urbanization breaking extended-family arrangements. Recent policy expansions (Basic Pension since 2014) have eased the worst but elderly poverty remains substantial.