English : Implications Of An Ageing Society - Essay Example

Implications of Ageing Society Name Institution Implications of Ageing Society Outline Introduction 1. Ageing population requires changes so that the society can grow as a whole. 2. How can we build a better society so that we can grow together 3. The society requires to change and adapt 4. Population aging does raise some difficult challenges, but they are not intractable Body There are various conditions that have contributed to ageing society 1. Advances in medical technologies reducing fertility rate, hence changing the age structure (Atalay & Barretr, 2012). 2. Today, people tend to live longer due to reduced family burdens (Carey, 2011). Aging population poses several challenges to the society. 1. The ageing society is likely to exert additional cost on healthcare (Carey, 2011). 2. It will also affect government spending on housing (Bloom et al., 2011). 3. The government will incur additional cost due to increased demand of social services such as pensions (Atalay & Barretr, 2012). 4. Reduction in labor force supply due to reduced participation of ageing population (Atalay & Barretr, 2012). There is need to making societal changes to alleviate the problems associated with an ageing population. 1. Encourage the older workers to remain in the workforce for a longer period (Nikolova, 2016). 2. Participate in volunteering, artistic and care work (Nikolova, 2016). Society changes have been implemented in developed countries and proved to be effective. 1. Australian government has introduced Age Pension reform to increase labor force participation of older workers increasing future stream of expected social security benefits (Atalay & Barretr, 2012). 2. In the United States, ageing population participate in voluntary work providing 7.9 billion hours of service (Nikolova, 2016). Conclusion Therefore, it is important to change to ensure that the society continues to grow as a whole. This can be done by providing opportunities where ageing population can delay retirement or engage in volunteering and care activities. Introduction Ageing society is the increase in the percentage of older individuals in a society as a result of an increase in life expectancy. Increased life expectancy, especially in the developed countries is due to improved health care, a higher standard of living, and falling birth rates (Bloom et al., 2011). This trend is expected to increase by 2050, and it is estimated that the number of people aged 60 and above will be more than double from its current levels. Population aging does raise some difficult challenges, but they are not intractable. This essay will review conditions that have contributed to ageing, challenges of aging and social changes that can be implemented to ensure the society grow as a whole. Reasons and Social Conditions that have contributed to the Ageing Society The ageing society has been contributed by two major factors. First, due to advances in medical technologies to control infectious diseases, the fertility rate has decreased and thus ultimately changed the age structure in societies. Advanced medical technologies have also reduced mortality rates which are linked to an increase in the human lifespan, and hence population aging. Fertility affects the number of children entering the population. Apparently, most families in developed countries including Australia have fewer children. The birth rate has also been declining since 1960s and the rate continues to increase. In fact, for the last two decades, the Australian birth rate has fallen below the required rate, an indication that without immigration the country's population would begin to fall (Atalay & Barretr, 2012). Individuals have right to make decision of the size of their families; however, the role of government is to help the parents in bringing up the children. The Australian government has put in place changes to taxes and benefits to assist families. The second condition contributing to an ageing population is that today people to live longer. In the 1960s, the life expectancy was around 68, today it has increased to 78, and it is expected to be about 83 by 2040. Also, with fewer babies, people are expected to live longer due to reduced financial constraints, and thus it is inevitable that the population will get progressively older. Implications for the Society Aging population poses several challenges on healthcare, pension and social benefit programs for the elderly. Consequently, this may hurt the economic growth as well as overall quality of life if the government diverts money from other sectors to finance the increasing burden from elderly programs. The ageing society is likely to exert significant pressure on the public spending programs to support the health care of the ageing population (Carey, 1999). With the increasing ageing groups, the larger the amount of money spent on public healthcare. Due to the increased life expectancy, the total healthcare cost is also expected to increase. This exerts burden on the government to put additional money into the support programs as well as medical treatment. The increase in ageing population means a decrease of the working population, and thus a decrease in tax for the state income. An ageing population will also affect government spending on housing. The government will have to adopt housing designs that are suitable for the ageing populations such as lighting, bathroom facilities, level access among others. Ageing society will also affect the demand for social services such as pensions. Although advances in medical technologies have significantly increased life expectancy, the government will incur additional cost to support more people on a pension for a longer period. The ageing population will also have a serious impact on the future workforce supply. As people approach old age, their probability of being part of the workforce decrease. Their assets could decrease as population ages because they increasingly rely on their saving to finance their spending, and hence slow economic growth (Bloom et al., 2011). Moreover, there is a reduced percentage of youths who are the main labors in many organizations. Societal Changes to alleviate Ageing Society It is important for the society to realize that the percentage of ageing population will continue to increase. Although in recent decade there has been little need for societal changes because population aging was slow as the population was widely represented by baby-boomers who have been fueling economic growth, now there is a need for making societal changes to alleviate the problems associated with an ageing population. To solve these problems, the society should change and adapt so that society as whole can start growing. One of the solutions is to encourage the older workers to remain in the workforce for a longer period to relieve fiscal pressure and economic challenges associated with ageing population. The government can introduce a phased-in retirement scheme where the older workers have the option to choose to work fewer hours yet remain in the labor force ever after retirement (Nikolova, 2016). It will help the industry avoid a decline in labor participation and providing pension to only a few people. The phased-in retirement scheme can be beneficial to the society, employers, and workers as it allows continuity in tax revenues, which is crucial for fiscal and macroeconomic stability. Moreover, older workers are valuable to an organization because they have acquired more knowledge and experiences. Finally, studies have shown that delaying retirement had a positive health and perceived well-being effect on the older employees. Alternatively, where same older people are unable to participate in phased-in-retirement, the government may encourage them to participate in care, volunteering and artistic work. Participating in such works can improve their social life, their well-being and contribute towards economy growth. Volunteering is an essential pro-social behavior as it has many individual and social benefits. More importantly, late life volunteer has lower chances of experiencing reduced mental and physical health and delayed mortality. Therefore, it is important for the government to seek and facilitate and adapt such opportunities for the ageing population. Also, care work offered by the ageing population should be recognized. Moreover, providing them with incentives and encourage them to engage in such activities can be valuable to society and prevent social isolation. The government can promote creative work by financing them in community centers for older participants. Effectiveness of Societal Changes In addressing ageing challenges, the Australian government has implemented changes in their programs. For instance, the government introduced Age Pension reform in 1993 to encourage older paper to remain active workforce. The reform has also increased the eligibility age for access to age pension benefit payments. As a result, it has changed the lifetime income of the older people. This change has helped to increase the lifetime income of an individual. Furthermore, extra work period will increases the future stream of expected social security benefits. In the United States, For example, volunteering is a widespread activity among the ageing population (Nikolova, 2016). In fact, approximately 44 percent of people aged 65 and above are volunteers, providing 7.9 billion hours of service. The ageing population is likely to volunteer because of reduced commitment and flexibility in schedules. Encouraging them to participate in volunteer services is vital because they hold an abundance of human capital. Consequently, it will benefit the society as well as prevent social isolation. Conclusion The percentage of the ageing population is expected to increase, posing economic and policy challenges. The constraints on healthcare, pension, social security and labor force are likely to have a negative impact on economic growth. This situation calls for changes to ensure that the society continues to grow as a whole. Although population aging does raise some difficult challenges, they are not intractable. Providing opportunities where the ageing population can delay retirement or engage in volunteering and care activities can be of significant social and economic benefit to relieve the fiscal pressure associated with the ageing society. Nevertheless, changes should be designed in such a way that recognizes the dignity and autonomy of ageing population. References Atalay, K. & Barretr, G. (2012). The Impact of Age Pension Eligibility Age on Retirement and Program Dependence: Evidence from an Australian Experiment. Retrieved on 2 December 2016 from https://www.uts.edu.au/sites/default/files/121024.pdf Bloom, D., Boersch-Supan, A., McGee, P & and Seike, A. (2011). Population Aging: Facts, Challenges, and Responses. PGDA Working Paper No. 71. Retrieved from 2 December 2016 from http://www.hsph.harvard.edu/pgda/working.htm Carey, D. (1999). Coping with Population Ageing in Australia. Economics Department Working Papers no. 217. Retrieved on 2 December 2016 from https://www.oecd.org/australia/1879131.pdf Nikolova, M. (2016). Two solutions to the challenges of population aging. Retrieved from 2 December 2016 from https://www.brookings.edu/blog/up-front/2016/05/02/two-solutions-to-the-challenges-of-population-aging/ Read More