Aging Population Demands Action, Opportunity Closing Rapidly

By Sola Alabadan, www.allafrica.com

September 9, 2009

Nigeria

An alarm has been raised that with the ageing of population around the world, an urgent is needed on the part of all stakeholders since available opportunity is closing fast.

This was contained in report entitled "Transforming Pensions and Healthcare in a Rapidly Ageing World" and put together by the World Economic Forum in collaboration with MERCER and the Organization for Economic Co-operation and Development (OECD).

The report says ageing population around the world demands action, and the window of opportunity is closing rapidly. This report states that a collaborative multi-stakeholder action is required to strengthen the financial sustainability of access to and quality of retirement and healthcare provisioning in a rapidly ageing world.

To achieve the necessary changes, the report highlights that a shift in thinking is required. It will be necessary to recognize the opportunities, both collective and individual, in the ageing of societies.

It was also recommended that it is necessary to develop collaborative ways to shape the "silver society", sharing benefits and risks rather than merely shifting the burden, as well as addressing the challenges associated with retirement and healthcare using an integrated approach, and stimulate action on joint solutions.
The report notes also the need to shift perceptions of retirement from an abrupt end to working life to a more gradual transition of forms and levels of activity, while also suggesting need to approach healthcare from a patient-centered, life course perspective, with an increasing focus on prevention.

It was pointed out in the report that the ageing of society can be transformed into a positive experience, and that multi-stakeholder collaboration is required to make this a reality.

Robert Greenhill, Managing Director and Chief Business Officer, World Economic Forum, says that "The ageing of society demands action as the window of opportunity to adequately prepare for this shift is closing fast. While immediate concerns about rising healthcare costs and pension structures require attention, fundamental long-term questions should not be neglected."

He stated that although the current global economic turmoil has put further pressure on already stretched resources, heightening the urgency of addressing demographic shifts, it is also presenting a once-in-a-generation opportunity for transformational change. Times of uncertainty, he added create space for radical and creative thinking, and now may be an ideal time to attempt reform while people are more open than ever to new ideas.

The report addresses the question of ageing societies from a perspective that integrates implications and solutions for both healthcare and pensions, whereas most reports look separately at one or the other.

In view of the fact that no single stakeholder can hope to tackle the associated challenges or make the most of the abundant opportunities; he pointed out that success will require diverse, multi-stakeholder collaboration and innovative approaches. 

The report focuses on opportunities, whereas most previous ones have focused primarily on risks. The risks of ageing societies are widely apparent: systems' adequacy may be called into question, stakeholders often seek to shift cost burdens onto each other, and there is a prospect of significant social tension. However, there are positive sides to ageing as well. More people can expect to enjoy better health later in life, enabling a greater level of activity in old age that can, in turn, improve the quality of life and social outcomes. There is ample room for the prevailing culture of youth to better integrate, learn from and appreciate the skills and experiences of older generations.

Besides, the report provides an overview of a broad set of practical solutions, ranging from the existing, but underappreciated, to the highly innovative. Ideas exist on how to tackle demographic change, but in pockets. This report brings together the most promising solutions and shares them with decision-makers who can assess which ones best suit their particular contexts.

The report thereby challenges all stakeholders to collaborate in new ways and consider connections they have not considered before.

It is hoped that the insights gained through the report will offer new perspectives on collaborative approaches to the sustainable financing of pensions and healthcare in ageing societies.

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