How ageing populations in the Asia-Pacific can become an economic boom

As the share of older people across the Asia-Pacific region increases, we must seek to turn this demographic trend into an opportunity. The number of elderly in the region is expected to rise from 535 million in 2015 to about 1.3 billion by 2050, and we need to consider the effects of this on our economies, societies and livelihoods.

Ignoring this challenge would have profound consequences. We cannot leave care of the elderly to families or ignore the need for health care and income security schemes. Economic growth is not assured; the ratio of working-age people to older people is falling sharply, and in most Asia-Pacific countries, less than a third of the working-age population contributes to a pension scheme.

Traditional systems rely on the family to support ageing relatives, but smaller families mean fewer working-age members to shoulder this responsibility. Declining support ratios also have implications for existing social security schemes, particularly pension systems under which contributions paid by current workers support retirees’ pensions.

To economically benefit from ageing populations, we must ensure that older people who want to work have the right and are provided with re-employment. The statutory retirement age across the Asia-Pacific is low, considering increasing life expectancies. Eliminating age barriers in the formal labour market would help ease the fiscal pressure on pension schemes and health care systems. Allowing older people to work as long as they are able and willing would sustain their self-sufficiency and reduce social alienation. Financially secure, healthy older people can use their decades of experience, wisdom and wealth to stimulate growth.