AUCKLAND, New Zealand / The National Business Review / September 4, 2009
By Niko Kloeten
Providing more work for the elderly is top of the list of recommendations in a new report by the World Economic Forum on the economic challenge of ageing populations.
“Transforming Pensions and Healthcare,” written in collaboration with the OECD and international workforce consultancy Mercer, says the window of opportunity is closing to address the massive demographic shift taking place in many countries.
It quotes a UN report from 2005 saying that by 2030 the world’s population of over-65s is expected to double, with most of the growth coming from populous developing nations such as India, China, Brazil and Indonesia. New Zealand is already facing the demographic squeeze – the latest Statistics New Zealand figures show over-65s currently make up nearly 13% of the population. And Mercer’s own “Workforce 2012” research estimated that between 2008 and 2012 the number of over-55s in the New Zealand workforce would increase by 100,000. However, the report concludes that the ageing of societies such as New Zealand provides both challenges and opportunities depending on how the change is managed. It suggests 11 strategic options for mitigating the economic strain posed by increased pension and healthcare costs. And promoting work for “older cohorts” is the number one recommendation. “For many people, better health in old age means productive employment is now possible and desirable well into their 70s,” the report says. “Coordinated action to change public policy, business practices and personal behaviour can promote lifetime employability and active aging.” It notes that older workers can still be productive if used in suitable occupations and if their workload is managed appropriately. The report also recommends shifting delivery of healthcare to a patient-centred system with a focus on good health rather than just curing illness; this, it says, would help reduce the incidence of preventable chronic diseases in old age. Other recommendations include better financial education and promotion of annuities markets to hedge longevity risk. An interesting option discussed is the use of “micro-pensions”, which are an extension of the microfinance movement. They are a combination of micro-insurance and microsavings products and target poor households; the amounts contributed may be very small. [rc] Copyright of National Business Review
