Economics of aging lays focus on the demographic trends of the population and the implications of population trend changes on the economy of the area under consideration. From the available information worldwide, it is well documented that the steady low fertility rate will have unavoidable results in the economy in terms of the age difference and so will be the generational gap. As a way of example, China’s one-child policy indicates that twenty years from now, the nation’s aging curve will be steep, meaning that most of its population will be composed of old people compared to youths. Elsewhere in France, fourteen years from today, 2025 demographic trends indicate that four out of ten people will be fifty years or older. Reasons for being priced out Political measures taken to improve the economic conditions of different territories in the world affect some groups of people adversely, especially the aged. As an example the U.S underfunding of long-term Medicare and social security affects people negatively in the long-term. The people have to work harder to cater for the deficit, or alternatively reduce the present standards of living in order to suit future cash requirements on this regard, only few people of the entire population are financially prepared for this challenge (Wise, 1987). Changes undertaken in the financial sectors for the betterment of long-term savings of the working people have great impacts in the future outlook in the future savings. Taking U.S economy as an example, for the last twenty five years, defined benefit pensions, which used to be the primary means of retirement savings has eventually been replaced by personal retirement accounts. This transition has very strong effects with regard to worker participation and the saving rates. It is most probable that participation and saving rate will be more when there is a form of regulation, meaning that an automatic enrollment is adopted and people at a certain bracket qualify for participation in the scheme by default. On the side of the personal retirement accounts, some form of autonomy is given to the contributors, this meaning that the relaxed regulations makes some people weigh the issue of participating or not. In the long-term, some people may be left out of the contributors (Schulz, 2001). The way the contribution scheme is designed also has effects on the number of people participating in the saving for future. Using the above example, complications arising from establishing individual account in the social security system can be illustrated. From a perspective of time saving, many people try to avoid as much as they can tedious and cumbersome processes in getting services from an institution.
Cite this document
(“Economics of Aging in Terms of How it Relates to Long-Term Care Essay”, n.d.)
Retrieved from https://studentshare.net/sociology/47448-economics-of-aging-in-terms-of-how-it-relates-to
(Economics of Aging in Terms of How It Relates to Long-Term Care Essay)
“Economics of Aging in Terms of How It Relates to Long-Term Care Essay”, n.d. https://studentshare.net/sociology/47448-economics-of-aging-in-terms-of-how-it-relates-to.
Cited: 0 times
The essay " Economics of Aging in Terms of How it Relates to Long-Term Care Facilities" describes that an organized, effective and coordinated regulatory authority should be put in place to ensure that all what has been invested by the social security systems is in safe place for workers after retirement…
The LTC provides improved services to the beneficiaries by assisting them in daily activities such as bathing, dressing, and using bathroom. However, modern study reports indicate the paucity of strategic efficiency, which raises numerous ethical questions with regard to LTC.
The percentage of the populace made up of aged persons in the United States is anticipated to increase from 13 to 20 percent in the next few decades. The number of Americans aged 65 years and above will rise by 35% to 71 million, by 2030, encompassing of 20% of the US population.
The baby boomers are expected to keep that growth cycle going, most likely at faster rate, which is expanding the demand for services and is also heightening the expectations from service providers (Study Notes, p. 2). From the economists and the business perspectives, when the demand increases, the supply will also increase to meet the increasing demand.
The matter has been further complicated by the fact that the system of long-term care facility regulations, licensure, and legal system had been largely ineffectual leading to failure to protect residents and to conform to quality criteria. It has often been commented that residents in the long-term care facilities have been abused for ages (Lachs, and Pillemer, 1995).
The author states that consumers rely on varied healthcare components for delivering care, while these components depend on varied other components for the necessary payment mechanisms and budgetary allocations. Thus, most of the components of healthcare in the USA are intertwined and require cooperation and understanding from one another.
Long Term Care insurance policies help many individuals to receive the expensive nursing homes and assisted living facilities. Long term insurance solves one of the biggest fears of Americans to spend all their life savings on expensive nursing costs and medical bills. Insurance is a way through which Americans can cover their expenses.
The author of the book has informed the readers about different institutions including community-based settings, quasi-institutions and others that have played a major role in the possibility of long-term care provision.
The world is an aging society and the United States is not exceptional. Research shows that by the year 2050, the number of older people is expected to go high by 135%. Long Term Care Continuum refers to the medical and social care services that are meant to support the needs of people living with chronic health problems.
3 pages (750 words)Essay
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Essay on topic Economics of Aging in Terms of How it Relates to Long-Term Care Facilities for FREE!