The G20, a group of world leaders who tackle international financial stability, have finally began tackling economic issues related to ageing such as increasing healthcare costs, labor shortages, and elderly financial services.
What we are saying is, ‘If the issue of ageing starts to show its impact before you become wealthy, you really won’t be able to take effective measures against it’,” Japanese Finance Minister Taro Aso, who hosted the G20 meeting in Japan.
Wealthy nations are expected to have a rapid expansion of elderly population because of longer life-expectancies and sliding birth rates, while emerging countries face “rapid demographic change”. By 2050, there may be over two billion people aged 60 and above globally – more than twice the 2017 population.
Aso, and Japan, are leading the charge to act fast before ageing piles economic pressure as many countries have failed to update their pension and employment systems, leading to fiscal and debt risks for countries and individuals alike.
Workforce and pension
Angel Gurria, chief of the Organization for Economic Co-operation and Development (OECD), also added to the growing concern: “You basically have a very large portion of mankind that is ageing and then the workforce is shrinking… These are trends that will continue, I am afraid. It’s not something you can suddenly stop.”
Gurria suggests that elderly workers and women should play a greater role in the workplace, and urged young people to prepare better for their financial future as the solution requires “changes to the way society organises itself.”
“Depending on how prepared you are, you are facing an uncertain future, which already has enough uncertainties,” Gurria said. “What you don’t want is to have certainty that you don’t have enough money in order to cover the pension.”
Story from AFP.