An aging population demands more pensions and more health

According to UN forecasts, the number of people aged 65 and over will have more than doubled by mid-century, so the rights and well-being of older people must be a priority in efforts to achieve a sustainable future.

The 2023 World Social Report calls for concrete measures to help the world’s increasingly aging population amid escalating pension and health care costs.

According to the study, published by the UN Department of Economic and Social Affairs (DESA), population aging is a defining global trend of our time, but countries can reap the benefits by giving everyone the chance to age well. health and promoting equal opportunities from birth.

“Together we can tackle current inequalities for the benefit of future generations, managing the challenges and seizing the opportunities brought by population ageing,” said Li Junhua, UN Under-Secretary-General for Economic and Social Affairs.

Increased life expectancy worldwide

In 2021, 761 million people worldwide were 65 years or older, a number that will rise to 1.6 billion by 2050. The number of people 80 years and older is growing even faster.

People are living longer thanks to improvements in health and medical therapies, increased access to education, and reduced fertility.

Worldwide, a child born in 2021 can expect to live, on average, to age 71, with women living longer than men. This is almost 25 years older than a baby born in 1950.

North Africa, Western Asia and Sub-Saharan Africa are on track to experience the fastest growth in the number of older people in the next 30 years. Currently, Europe and North America together have the largest proportion of this population.

Population aging is a defining global trend of our time. In general, people are living longer and older than at any time before. (Photo: © UNFPA China)

Inequality in aging

The increase in life expectancy in the world reflects a general improvement in health. However, the report points to inequalities in our aging world, because not everyone has benefited equally from the improvements in health and education that are driving this transformation.

While many older people are in excellent health or “economically active,” others live with ailments or in poverty.

In the more developed regions, pensions and other public transfer systems contribute more than two thirds of the consumption of the elderly. Their counterparts in less developed regions tend to work longer and rely more on accumulated assets or family support.

In addition, the aging of the world population also implies an increased need for long-term care, a weakness highlighted during the COVID-19 pandemic. Unfortunately, public spending in most countries has not been sufficient to cover the growing demand.

A lifetime at a disadvantage

Life expectancy is greatly influenced by factors such as income, education, gender, ethnicity, and place of residence.

“Some combinations of these factors have all too often led to systemic disadvantage beginning in the first years of life,” the report authors noted.

These same experts warned that without policies to prevent them, these systemic disadvantages reinforce one another throughout people’s lives, leading to huge disparities in old age.

As a consequence, progress towards the achievement of the 17 Sustainable Development Goals (SDGs) could be jeopardized, specifically number 10 on reducing inequalities.

Rethink policies, expand opportunities

The report recommends that countries rethink policies and practices associated with livelihoods and work. Many governments are already introducing lifelong learning opportunities, as well as strengthening and making the most of intergenerational workforces.

They are also introducing flexible retirement ages to accommodate a wide range of situations and personal preferences.

The pension dilemma

The authorities must also rethink social protection systems, including pensions.

“One of the main challenges is to maintain the fiscal sustainability of public pension systems, while guaranteeing income security for all older people, including workers in the informal sector,” the report states.

Other crucial elements consist of expanding decent work opportunities for women and other groups traditionally excluded from the formal labor market.

The objective is to guarantee their well-being when they are older and to expand the productive capacity of the economy.

The analysis suggests that the considerable contribution of the informal care sector to the formal economy should also be recognized and taken into account. (Font: UN News)