Sunday, February 5, 2017

Burden of Ageing Population


Contents


Ageing population and its burden

The world is having a demographic change and therefore it is an interesting aspect to understand that the elders (people aged 65 or above) are going to outnumber the children after about five years. The estimated grow of the people aged 65 or older is projected to grow from 524 million in 2010 to about 1,5 billion in 2050 which is most likely to affect developed countries. The causes to this change is due to the falling fertility rate and the incredible increase in the life expectancy. (WHO, 2011).

In Finland the population is ageing faster than most of the countries in the world. In 2012, the population of Finland above 65 years of age was 18,5% and population above age of 80 was 5%. By 2050, the Finnish population above 65 are expected to be 27% and 11% will be above age of 80 (OECD, 2013). In Finland, the projected increase in population aged 60 years or more is expected to increase by 20 percent between 2015 and 2030 (United nations,2015).

According to the report of Statistics Finland, the number of the population of working age (aged 15 to 64) was highest in 2009, when there were 3.55 million. In the period of 2010 - 2014, the number of working-age people has fallen by 69,000 persons. The population projection of 2015 states that the number of working-age people would decrease from the current 3.48 million to 3.41 million, or by 75,000 persons, by 2030. Also, Statistics Finland's latest population projection assumes that the birth rate would remain constant in future which is assumed to be at 1.70. (Statistics Finland, 2015).

With constant increase of ageing population over years has raised the interest among the policy concerns in quality of life and ageing. The policy makers are alarmed to maintain the independent lifestyle among the older people and reduce the public expenditure on pensions, health and social provisions and ultimately maintaining ‘a good life’.  The future density of morbidity and disability is conjectured to be healthy or disability-free life expectancy, leading perception of ageing as normal (Péron 1992; Manton et al. 1993, 1995; Grundy 1997; Dunnell and Dix 2000; Kelly and Baker 2000). The public policy however is more likely to be concerned with making older people maintain their mobility, individuality, their active contribution or influence to the society, and to respond efficiently to the challenges of ageing (Bowling, Ann. 2007).

Aspects of Ageing

The ageing people often seek for assistance in everyday activities with the increase in their age and these problems related to their inefficiency are linked to the various aspects of ageing like physical, social, psychological and environmental. Ageing population goes through enormous physical changes. The hearing impairment among the aging population is often moderate and mild. These kinds of difficulties are experienced by 48 percent of men and 37 percent of women above the age of 75 in America. Also, older adults face the visual changes which connect them with the problem in reading, seeing in dim light etc. These adults take longer time to respond to the features in the environment. It is reported that, even with the decline in the physical health 2/3rd of the older adults who are living around their closed ones have better health. Even when the physical limitations are seen with aging population after the age of 65, they are able to learn to live happy and productive life.

The older adults or aging population has various psychological problems associated. Some of the psychological problems are associated with dementia, behavioral disorder and Alzheimer’s diseases. The people often suffer from depression, anxiety and paranoia. The older adults who live alone has higher suicide rate and alcohol abuse. Some people even get lost even in their own homes. (American Psychological Association).

The aging people have more tendencies to get affected by the environmental exposures. In order to avoid the burden of disease in older population, it is important to identify and avoid the potential risks of cancer, diabetes mellitus and cardiovascular disorders. The environmental pollutants and chemicals unpleasantly affect the homeostatic status of ageing (Hong, 2013).

Norms and values related to ageing are important aspect to understand. These aspects differ from culture to culture and region to region. For example, in Asia, responsibility to take care of elderly member lies fully to the family members but in other western countries, elderly is considered independent and are expected to take care of themselves. Also the perception of ageing differs in each individual. For some, old age may be the time to explore hobbies and activities that they couldn’t do during their young age but for some others, old age is not the phase looked forward to. Some people fear old age and are ready to do anything to avoid it by medical and cosmetic fixings. These differing views on the life course are the results of cultural values and norms in which people socialize everyday (Little et. al, 2013).

If we compare Finland in terms of norms, values and social life, Finns above 60 years of age have positive perception of ageing. Aged population in Finland generally lives an active life are interested in family, relatives, home, entertainment, art and travelling. In addition to this, elderly Finnish citizens also get attractive social and healthcare benefits from the government. However, loneliness and feeling of isolation has become burning societal issues among elderly population.

Challenges of Ageing

Increase in the population of ageing will have direct impact in the dependency ratio. As life expectancy rate is increasing each year and if the retirement age remains fixed, there will be large number of people claiming benefits of pension and less people working and paying income taxes. Further, the ageing population shifts the high responsibility towards the government. The government needs to increase spending in the healthcare and pensions which is higher concern especially in the government of western countries.

Ageing population has various affect in the availability of the workforce.  As country lacks the young population, it will create the shortage of working population which might push up wages causing wages inflation. For encouraging the workforce, the company may need to offer flexible working practices and higher salary. Additionally, the working population might also need to pay higher taxes which indirectly might affect in productivity and growth of the company.

With the increase in the aged population, various products and services for the retired people increases. There will be a bigger market for the goods related to the older people like nursing or retirement homes, health products etc. Also, the society needs to start higher savings for the pension funds which reduces the capital investment. In long run, the lack of productive investment leads to decline in the economic growth of the country (Pettinger,J. 2016).

Ageing population also adds the burden of diseases. it is estimated that 23% of the total global burden of diseases falls to older people above 60 years of age. These populations are more at risk of cardiovascular diseases and sensory, respiratory and infectious disorder. These obstacles are due to the unsuitable global health priorities, ageism, the poor preparation of health systems to supply age appropriate care for chronic diseases (Prince et. al. 2015)

Positive Ageing: The Solution to the burden

Active or healthy ageing is a fresh and hot topic. ‘Active ageing means helping people stay in charge of their own lives as long as possible as they age and they contribute to the economy and society’ (MOPACT,2013). Active ageing optimizes the opportunities for health, participation and security in order to enhance quality of life of people of ageing people. If the ageing population is active, they are able to apprehend their potential for physical, social and mental wellbeing and involvement in the society. For this, ageing population needs adequate protection, security and care (WHO).

There are various determinants of active ageing like Health and social services, behavioral, personal, social, economic, physical environment etc. as mentioned above in the diagram. These determinants define if the population is aged healthy or not which will give clear picture if they are burden to the economy or they are contributing to the better economy. To be able to achieve the positive or active ageing, the action is necessary from both the individual and government level.

An individual in their older age should continuously take part in the physical activities that will reduce the start of chronic diseases. The regular physical activity reduces the risk of cardiac death by 20 to 25 percentage among the people with established heart disease (Merz and Forrester, 1997). Further active living also improves the mental health of the person and promotes the social contacts. The active behavior of older people has important economic benefits as this will lower their medical costs (WHO, 1998).  Apart from physical activity, older people also needs healthy habits like eating healthy and maintaining the oral hygiene. These activities directly affect the health status of older people. Older people have often the risk of malnutrition which is caused by the limited access to the food and lack of information about the health and nutrition.

Government can play major role in active ageing of the population. Physical environment is one of the most important aspect for ageing population. They need safe, adequate housing and neighborhoods. Also accessible and affordable public transportation services both in rural and urban areas will lead them to keep participating in the social affairs. The physical barriers for older people may lead to inactive behavior in the society and therefore there is more chances of the isolation, depression, reduced fitness and increased mobility problems.

The ageing population always seek for the social support. The government needs to provide them with the adequate social support which will affect their health and wellbeing. The older people are more likely to be excluded from the family or society due to their inability. Especially in the developing countries, the older people are supported by the families however this trend is slowly becoming less. Getting the rejection from the family and society will affect their mental and physical health. The government needs to plan for the long term care and health services to the aging population (WHO, 2002).

Government should implement the following plans to make ensure better life for ageing population:
1.      Make favorable environment for people above 65 to keep working and increase their participation rate.
2.      The life expectancy and retirement age are directly proportional and therefore government needs to raise the retirement age.
3.      Encouraging the private sectors in providing the pensions and health care. This private services might cause inequality and general public might not be able to afford.
4.      By increasing the tax to pay for pension cost.
5.      Encouraging the immigration which will provide the country with the young population contributing to the economy of the country. (Pettinger, T. 2016)

Ageing: An Opportunity?

Ageing is always considered as burden because of its negative effects bearing in mind the economics but it also offers some opportunities. The companies need to understand and research this group of population to make special marketing strategies of business. Ageing population has many possibilities to actively participate in various events and activities. The Association of British Travel Agents reported that the age group of 51-69 have increased their holiday trips and are more keen to experience other countries and cultures. AllClear Travel Insurance also admits that older traveler is becoming more adventurous and they are interested in activities like trekking, cycling, skiing etc.

About the opportunities with ageing population, films can be an area of opportunity. The movie makers should fulfill the demand of movies based on retired population. Further, Ageing population can also be seen as a big player in the market because this population may own incredible wealth and they can be a big player in the market and businesses. Additionally, other fields such as fitness, online dating etc. can also be important areas where opportunities can be created for ageing population (Jones,H. 2015).

Conclusion

It is very essential to understand the clash of generations to overcome the mismatch between the demand and supply of labor. Also it is important to make investments in the human capital and creation of jobs for low skilled workers as well as aged population. This will prevent the possibility of labor shortage and ensure higher employment rates. The reduction in the VAT on labor intensive services needs consideration which could lead to additional services for elders in shopping support, home help etc. In case of Finland, the deductibility of tax in household related services is a good approach. Also policies should be made to ensure right attitude towards the elders and support active ageing. Activities that involves lifelong learning, networking and activities of pensioners, possibility of volunteering etc. (Kunz, 2007)

Ageing population needs understanding from society and government. It is important to maintain the healthy society realizing the fact that ageing population contribute to the large portion of the population.  New technologies and business ideas should be introduced keeping in mind the demand of elderly population. Health can be both humane and a productive goal for society and all of its actors (Koponen,J 2015).

References:
A Good Life in Old Age, OECD/European Commission, June 2013. https://www.oecd.org/els/health-systems/Finland-OECD-EC-Good-Time-in-Old-Age.pdf
Aging Society and Environmental Health Challenges. Hong, Y-C. 2013. Available on http://ehp.niehs.nih.gov/1206334/
Bowling, Ann. Ageing Well: Quality of Life in Old Age. Berkshire, GB: Open University Press, 2007. ProQuest ebrary. Web. 5 November 2016.

Global Health and Aging.2011. WHO. National Institute on Aging & National Institutes of Health.
Referrd on 09.11.2016. Available on http://www.who.int/ageing/publications/global_health.pdf

Jones,H. 2015. How the ageing population is a boon for business. Website of theguardian. Accessed on 09.11.2016. Available on https://www.theguardian.com/money/2015/aug/19/ageing-population-pension-reform-boon-business

Koponen,J. 2015. Health 2050: How Finland will make the most out of its aging population and what other nations can learn from it. Referred on 09.11.2016. Available on http://www.demoshelsinki.fi/en/2015/06/10/health-2050-finland/
Kunz,J. Population Ageing- Problem or Opportunity? 2007. Journal of Sociology. Volume 1, Issue 1. Available on http://www.scientificjournals.org/journals2007/articles/1077.htm

Little et. al. Aging and elderly. In book: Introduction to sociology. Rice university, Canada. 2013.https://opentextbc.ca/introductiontosociology/chapter/chapter13-aging-and-the-elderly/
Older Adults' Health and Age-Related Changes. Website of American Psychological Association. Referred on 05.11.2016. Available on http://www.apa.org/pi/aging/resources/guides/older.aspx

Pettinger,J. 2016. The impact of an ageing population on the economy. Available on http://www.economicshelp.org/blog/8950/society/impact-ageing-population-economy/. Referred on 05.11.2016.

Prince, et. al. 2015. The burden of disease in older people and implications for health policy and practice. The Lancet, 385(9967), pp.549-562.

Share of young people in the population is in danger of diminishing further. 2015. Population and Justice Statistics. Statistics Finland. Referred on 09.11.2016. Available on http://tilastokeskus.fi/til/vaenn/2015/vaenn_2015_2015-10-30_tie_001_en.html

World Health Organization. Active Ageing: A policy Framework.2002. Accessed on 06.11.2016. http://apps.who.int/iris/bitstream/10665/67215/1/WHO_NMH_NPH_02.8.pdf



-Umesh Timilsina'
University of Eastern Finland
2016


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