Asian Development Bank Warns of Aging Crisis in Asia-Pacific Region

The Asian Development Bank (ADB) has sounded the alarm that developing nations in Asia and the Pacific are ill-prepared to support their rapidly aging populations. A new report released by the ADB projects that the number of people aged 60 and above in the region will nearly double by 2050, reaching 1.2 billion and accounting for about a quarter of the total population.

Why this matters: The rapid aging of populations in Asia and the Pacific has significant implications for the region's economic growth, social stability, and healthcare systems. If left unaddressed, this demographic shift could lead to increased poverty, social isolation, and healthcare costs, ultimately affecting the region's overall development and prosperity.

The report, titled "Aging Well in Asia: Asian Development Policy Report," was unveiled at the ADB's 57th Annual Meeting in Tbilisi, Georgia. It highlights the numerouschallengesfaced by the region's growing elderly demographic, including low pension coverage, health issues, social isolation, and limited access to essential services.

According to the report, 40% of individuals over age 60 in Asia and the Pacific lack access to any form of pension. Among those still employed at age 65 or older, a staggering 94% work in the informal sector, which typically fails to provide basic labor protections or pension benefits. The report also found that approximately 60% of older individuals in the region do not receive regular health checks, while 31% report depressive symptoms resulting from illness, social isolation, and economic insecurity.

ADB Chief Economist Albert Park emphasized the urgency of the situation, stating,"Asia and the Pacific's rapid development is indeed a success story, yet it is also fuelling a significant demographic shift, and the pressure is mounting. Governments must prepare now to effectively assist hundreds of millions of aging individuals in the region. "He added,"Policies should encourage lifelong investments in health, education, skills, and financial readiness for retirement. Nurturingfamily and social bonds is also crucial to cultivate healthy and productive older populations and maximise their societal contributions."

The ADB report urges governments to implement comprehensive policy reforms to address the challenges posed by the aging population. Key recommendations include government-assisted health insurance and pension plans, improved health infrastructure, provision of free annual check-ups and lifestyle evaluations, universal healthcare coverage, extension of basic labor protections to older informal sector workers, flexible retirement ages, promotion of health among the elderly, suitable work opportunities, and facilitation of lifelong learning and skills development.

The report also highlights the potential "silver dividend" that economies can gain from older individuals, potentially boosting the region's gross domestic product by 0.9% on average. However, ADB Senior Economist Aiko Kikkawa cautioned, "It is very important that the country has to prepare to be able to support them. You do not want to wait until you have many older persons."

The Asian Development Bank has reaffirmed its commitment to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. As the region grapples with the challenges posed by its rapidly aging population, the ADB aims to support governments in modernizing social protection programs, improving information systems, digitalization, and data collection to enhance access to resources, particularly during crises like the Covid-19 pandemic.

Key Takeaways

• Asia-Pacific's population aged 60+ will nearly double by 2050, reaching 1.2 billion.
• 40% of individuals over 60 in the region lack access to any form of pension.
• 60% of older individuals in the region do not receive regular health checks.
• ADB urges governments to implement comprehensive policy reforms to address aging population challenges.
• Supporting older individuals could boost the region's GDP by 0.9% on average.