The process of population ageing and its challenges

Abstract

Most Asian populations are ageing, but the degree varies considerably. Patterns of ageing since 1950 show six relatively homogeneous geographically-defined groups. The causes of ageing are demographic transition and emigration. Rapid economic development and demographic transition are associated with advanced ageing, while warfare and slow development are associated with delayed demographic transition and reverse ageing. The consequences of population ageing include two main social security challenges: retirement income support and personal care provision. Traditional support systems are uncertain in the context of increased longevity, small families, changed gender relations, out-migration for employment and the modern economy. However, the intergenerational contract is generally upheld through adaptations (including diversified living arrangements, monetary transfers and gifts, attitudinal change, revised expectations and a relaxation of customary roles) that often do not adversely affect elder well-being. The establishment of formal old-age social security systems in Asia has been slow. System reform is beginning to meet the challenges of fiscal sustainability posed by ongoing ageing. Social pensions are becoming more commonplace and, though their value remains low, are instrumental in reducing poverty and increasing well-being in old age. Policies supporting adaptation will enhance the well-being of both older and working generations.