A country has a high proportion of elderly people, but government pension expenditure is relatively low. Which factor could explain this?

Correct answer: Many elderly people may rely on private savings or family support

A high elderly share does not by itself determine how much the government spends on pensions. Public expenditure depends on the design and coverage of the pension system, eligibility rules, benefit levels and the sources of income used by older people. In some societies, older adults may receive support mainly from their own savings, employer pensions, assets or family members rather than from the government.

If many elderly people rely on these private or family arrangements, the government’s direct pension bill can remain relatively low even though the elderly proportion is high. This does not mean that ageing has no connection with social security; ageing can still increase pressure on families and public services. Nor are pensions always zero or support absent. Thus, option A gives a plausible explanation without claiming that all older people share the same situation.