Policies for ageing

Thursday, 30 June 2016 00:00 -     - {{hitsCtrl.values.hits}}

Sri Lankan men and women are living longer. But how can they do so while still making an economic contribution? How can Sri Lanka make an ageing population work while also ensuring that they continue to be treated with respect and dignity? Early planning could make sure that these are mutually inclusive goals. Since 2013, life expectancy is 72 years for males and 78.6 for females, while the life expectancies for males and females for the year 2001 were 68.8 and 77.2 years respectively. 

In Sri Lanka, sustained decline in fertility coupled with out-migration has significantly changed the country’s dependent population. The child population of 4.7 million in 2011 is projected to stabilise at 3.5 million during 2031-2041. Similarly, the working age population that comprised of 65% of the total population in 2006 will gradually decline to 63.2% and 52% in 2031 and 2071, respectively, with a demographic dividend lasting in Sri Lanka only until 2017. On the other hand, the elderly population of 1.7 million in 2001, is expected to rise to 3.6 million by 2021, and will comprise 16.7% of the total population. By 2041, one in every four Sri Lankans is expected to be elderly.  

Government hospital statistics indicate that 71% of all annual deaths are attributed to chronic Non-Communicable Diseases (NCDs).  A study by the National Bureau of Asia Research estimated that by 2025 diet related factors – primarily saturated fat intake – will account for almost 40% of CVDs. Diabetes will contribute to approximately 29% of CVDs and 18% of strokes. Similarly, obesity and excess weight will account for 24% of diabetes and 27% of hypertension. 

Policymakers must realise right now is Sri Lanka’s demographic window of opportunity—an optimal time for investing in formal systems of old-age support. This window has been opened by falling fertility rates, which mean that the number of working-age adults will continue over the next few decades to grow faster than the number of children and elderly.

To offset the impact of the demographic shift and other changes on the traditional system, policymakers must invest in the systems that would encourage and facilitate the elderly to work longer, save more, rather than relying on only a public pension or health care program to meet their needs fully. There is also need for programs to assist families in caring for the elderly that could include providing tax incentives for elder care and increasing day care and home nursing services. 

Greater workforce retention levels would help elderly individuals save more for retirement; they would also bolster the fiscal viability of public pension and health care programs. Work disincentives and labour market impediments to the elderly (such as low mandatory retirement ages) should be eliminated. Increasing both flexible and part-time employment options as well as expanding educational programs for older workers are also essential. Finally, policymakers should encourage high rates of personal savings by managing inflation to secure the value of savings over the long-term.

However, providing wide coverage in developing countries requires political stability and may be administratively challenging, particularly in Sri Lanka that has a high proportion of agricultural, self-employed, and informal-sector workers. These programs also must be designed with enough capacity to incorporate the expanding ratio of elderly to working-age populations. The old should be cherished and not allowed to become a burden.

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