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亚马逊云账号( and social systems a priority in shifting demographic trend


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GLOBALLY, the pace of population ageing is much faster than before, as people are generally living longer and fertility rates are falling. According to the World Health Organisation (WHO), one in six people in the world will be aged 60 and above in the next nine years.

As such, the share of the population aged above 60 will increase to 1.4 billion in 2030 from one billion last year. And by 2050, the world’s population aged above 60 is likely to double to 2.1 billion, estimates WHO.

Similarly, the health organisation forecasts that the population aged 60 and above in the South-East Asian region is also expected to rise to 13.7% and 20.3% by 2030 and 2050, respectively, from 9.8% in 2017.CLICK TO ENLARGE

However, alarming data by WHO reveals that two-thirds of the world’s population over 60 will live in low-and middle-income countries.

Having said that, these countries must ensure health and social systems are in place, given the demographic shift. So, how are the super-aged countries grappling with this phenomenon?

According to Malaysian Institute of Economic Research head of research Shankaran Nambiar, advanced super-aged countries have good welfare state mechanisms and high tax rates to fund these policies.

“The retirement age is relaxed, so that people can work as long as possible to fund their own healthcare and other costs,” he adds.

It is worthy to note that a super-aged country means that more than one in five people are aged above 65.

Citing Germany as an example, Ernst & Young Consulting Sdn Bhd people advisory services partner Low Choy Huat says there is no age limit for employees to work and key policies such as pension entitlements do not automatically lead to the termination of employment in the country.

“Although the regular old-age pension has been gradually raised from 65 to 67 in Germany, there are early retirement compensation models that are more advantageous compared to severance payments,” he notes.

It is important to note that the share of the elderly population in European countries such as Germany, Spain, and Italy is projected to be over 35% by 2050, while Japan, Korea and Singapore are likely to reach 40% in the same period, forecasts Low.

Another key policy that Germany has introduced is flexible work arrangements, whereby continued employment is considered beyond the retirement age.

“Freelance frameworks or a part-time retirement model encourage elderly employees to stay longer in the workforce,” points out Low.

The popular part-time retirement model in Germany is when an employee works full-time for three years but earns only half the salary, and then does not work for another three years, but will continue to receive the other half of his salary.


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