Ensuring the welfare of older people 

The growing number of older Asians has been facing numerous difficulties, including inadequate pensions, ill health, destitution, social and economic injustices, limited access to basic services, and more, as developing Asia and the Pacific is unable to guarantee the welfare of its aging populace.

The demographic composition of developing Asia is shifting towards an older age range. The percentage of the population that is over 65 increased from 5.9% in 1960 to 8.2% in 2000 and 13.5% in 2022 in the region.

It is projected that the number of people 60 and over would double from 567.7 million in 2022 to 1.2 billion in 2050, making up 25.2% of the total population in the region. Furthermore, by 2050, developing Asia will be home to 55.6% of the world’s elderly population. Twenty developing Asian economies will have 20% of the global economy by 2050, 22 economies will have 10% or more, and four economies—Afghanistan, Pakistan, the Solomon Islands, and Vanuatu—would still have less than 10%.

Given how different today’s senior population is from yesterday’s, the demographics of the elderly in the area are changing dramatically. Because there are more older women than older males, life expectancy at 60 years of age increased by 4.7 years for women and 3.5 years for men between 1980 and 2022. By 2050, the oldest old will account for a significant portion of the economies of Southeast Asia and the Pacific.

But compared to cohorts of the same age forty years before, the current generation of older adults has greater educational attainment.

The Asian Development Bank (ADB) has released a report titled “Aging Well in Asia: Asian Development Policy Report,” which looks at the difficulties that lie ahead and the progress that has been made in Asia and the Pacific region toward reaching the aim of aging well.

It centers on the difficulties that older Asians face because income is not a sufficient indicator of well-being on its own. Instead, governments in the area need to establish conditions that support the advancement of all four dimensions of well-being, which include social engagement, productive work, physical and mental health, and economic security. In addition to encouraging older people’s active social involvement and lowering their need for long-term care, good health also increases productivity and financial security.

The well-being of senior citizens is compromised by poverty in a number of ways. Eating fewer and less nutritious foods might be a sign of poverty. Given that anxiety and depression can be exacerbated by poverty and financial instability, it is possible that older adults cannot afford healthcare. In the majority of Asian economies, extreme poverty afflicting the elderly is decreasing.

Although absolute poverty has decreased among the elderly, relative poverty is still significant in a few economies. It highlights two significant regional obstacles to older people’s well-being: widespread informal employment and gender disparity. Although older women are more likely to get sick, they should still expect to live longer than men.

The quality of life and its potential are included in the concept of well-being, which depends on variables that go beyond the conventional definition of poverty. The application of a comprehensive methodology to assess older people’s well-being in developing economies is hampered by three issues.

The first issue is whether the framework can account for the diverse institutional settings and differing social and cultural values that frequently have an impact on well-being.

The second question is whether a framework of that kind can be used to measure well-being in the subgroup of individuals who belong to the particular life stage known as old age. The absence of comprehensive and consistent data across economies to produce precise indicators comes in third.

The paper examines four key factors that significantly influence older people’s well-being: their physical and mental health, their ability to work productively, their financial security, their social involvement, and their meaningful interactions with family.

The demographics of the elderly are changing, bringing with it opportunities as well as concerns because living alone raises the possibility of old age poverty. Conversely, as older Asians’ educational attainment rises, so does their potential for productivity and new economic prospects.

Growing longevity has shown to be a double-edged sword: while longevity in good health enhances quality of life in old age, longevity in poor health puts significant pressure on healthcare systems. Work contributes significantly to older people’s well-being since it provides income for both present needs and retirement savings. In addition to immediately enhancing well-being, work also benefits the economy as a whole.

Experience in developed economies demonstrates that large savings from increased wages and improved pension coverage work against the desire to work longer and instead favor retirement.

Nonetheless, a large number of elderly laborers throughout Asia and the Pacific are forced to work at low-paying occupations in the unorganized sector until they pass away. When it comes down to it, the impact of labor on older workers may be attributed to three main factors: the degree to which older individuals are forced to work, their physical ability to work, and the availability of good jobs.

The majority of males who are in their late 50s and early 60s still work. In around 34 economies, men between the ages of 55 and 64 make up between 60% and 80% of the labor force.

Most senior workers are employed in the unorganized sector. In economies where data is available, 94% of individuals 65 years of age and older work informally, sometimes in unstable jobs.

In South Asia, the percentage of senior people who labor informally is extremely high: 92% in Sri Lanka, 97% in India, and 99% in Bangladesh.

Informal labor is more common among women in manufacturing, among family workers, and among hired domestic assistants.

In every economy, women retire at a higher rate than males, and those with the lowest educational attainment retire later.

As one ages, the proportion of older laborers in agriculture rises. Bangladesh, Cambodia, Indonesia, Pakistan, and Vietnam have disproportionately high rates of the 60+ age group—above 50%.

Because of a more noticeable outflow from the labor force in other sectors, the 75–79 age group has the highest share across all economies. Because farm employment is typically informal, there is no set retirement age and little pension coverage.

A large number of older workers lack both a well-defined retirement plan and the necessary financial resources due to high informality.

Additionally, the research offers suggestions on how Asia and the Pacific could get ready to ensure the health of its growing aging population.

Asia and the Pacific region’s policymakers need to move quickly to enhance the wellbeing of the elderly. The diversity of older workers and new trends should be included in policies that support employment and productive aging.

These older workers would be able to retire with greater dignity and well-being if they had access to basic labor protection against disease, accidents, and disability as well as pension and savings options.

More focused regulations are required to reduce inequality by raising the standard of labor performed by the elder unemployed. Governments with sizable informal economies should guarantee elderly informal workers’ access to basic pensions and labor rights, as well as provide them with easy-to-work-for jobs and labor-protection regulations.

Pension systems can be made more sustainable with the help of automatic adjustment mechanisms, or AAMs. Asia’s pension systems will benefit tremendously from technological developments.

Fintech and digitization hold the potential to reduce the difficulties associated with pension delivery and contribution collection in the unorganized sector. Agriculture-related technological advancements may allow older laborers to continue working longer.

Social pensions with a clear focus can be viable and efficient. Establishing efficient social pensions in Asia and the Pacific economies that do not have them presently is a top goal. Governments in the area need to step up their efforts to raise awareness of financial literacy through awareness programs. Tailored regulations are necessary due to the diverse situations of older workers, both formal and informal. Governments have more to do to enable Asian Americans to make plans and get ready for retirement.