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Facing the realities of an ageing population
View(s):The ageing of Sri Lanka’s population is one of the most serious socio-economic challenges in the coming decades. Although the Budget of 2015 recognised this to some extent, no significant steps have been taken to cope with the problems of an ageing population.
Weak public finances, distorted prioritisation of public expenditure and wasteful expenditure leave no fiscal space to address the needs of the elderly. The inability to reform the retirement age and retirement benefits compound the economic and social problems of an ageing society. It would be some time before sober thinking on serious social issues would be addressed. Nevertheless it is important to highlight the emerging problems of the country’s ageing population.
Demographic profile
Sri Lanka’s ageing population is growing much faster than other South Asian countries and consequently having the highest proportion of elderly population in South Asia. By 2031, the elderly population of the country is expected to be more than 20 per cent of the total population and by 2041 one fourth of the population would be elderly. By mid-century the elderly would constitute half of the population. At the same time the proportion of working age population will progressively decrease in the coming decades.
Inadequate retirement benefits
The retirement schemes now in operation are limited in coverage, inadequate to those who benefit by them and a strain on the resources of pension funds and the government. A total revamping of these schemes to make them more supportive of the elderly, while at the same time financially viable is a serious challenge. Pension reforms both in the public and private sectors are necessary to enable adequate real incomes for extended periods of life.
Current retirement benefits are inadequate for an extended period of life owing to the erosion of their real value due to the long post retirement period and increasing prices. There is a strong argument for indexation of pensions, or at least periodic adjustments in pensions on a basis that protect the real incomes of retirees. The revamping of these schemes in the public and private sectors to make them more supportive of the elderly by improving their retirement benefits and at the same time be financially viable is a serious challenge.
Redefining the elderly
The conventions regarding the definition of the elderly should be re-examined. Old-age dependency is currently based on the definition of the elderly as those above 60. A more realistic assessment of the problem could be based on those aged over 65 or even 70, as most persons are active beyond 60.
It is also necessary to change the current age of retirement. The age of retirement needs to be aligned to increasing life expectancy. It should be extended in a phased manner to lessen financial strains on the working years and ensure more adequate retirement benefits.
Healthcare
Healthcare systems would require to be geared to old-age illnesses, such as Alzheimer’s disease, heart disease, cancer, arthritic conditions and osteoporosis that would increase considerably. National health policies should prioritise health facilities for the elderly and medical, nursing and paramedical training specialising in geriatric care and other medical needs of the elderly should be put in place early. National health policies should prioritise the potential increasing demand for health facilities for the elderly. Medical training, specialisation in geriatric care and other medical needs should be planned early. Nursing care, paramedical training and medical facilities for the elderly should receive immediate attention. Health-awareness programmes should be launched to change the lifestyles of youth and to also address ways for the elderly to cope with these problems once they surface.
Caring for the elderly
Increased longevity, changing social modes of living and weakening of the traditional caring of the elderly within the family household necessitate expanded institutional means of caring for the elderly. More homes for the aged need to be established. This would involve significant public spending, as most senior citizens would not be able to pay the full cost of such services. Besides finance, new capacities for caring for the elderly require to be developed and human resources have to be mobilised through voluntary and community participation.
Adequate institutional capacities to care for the larger number of elderly requiring such facilities should include expansion of state facilities; increased state assistance to community and religious institutions, encouragement of community initiatives for elderly care, and incentives for private-sector development of Elders’ Homes for the middle classes and the relatively affluent.
A proportion of the welfare expenditure of the government should be earmarked for developing infrastructure and assistance for the elderly. Residential Elders’ Homes should be supplemented with day care services that may be a preferred option for elders in the Sri Lankan cultural context.
Concluding reflections
The next decade after the 2015 election should be a period of economic and social readjustment to the realities of the ageing population. It is the time to prepare to meet the new challenges of ageing, build the infrastructure for caring for the aged, revamp retirement benefits and ensure that the ageing population is not burdensome to society as a whole.
The country spends far too little on health to cope with health problems of an ageing population and on the expansion of institutional social services. The political distractions and distorted prioritisation of government expenditure are serious constraints in funding these critical areas. The weak fiscal situation will continue to hamper efforts to face the emerging problems of an ageing population
The Government is also unable to take needed reforms to alleviate the burdens of the emerging demographic realities relating to the age of retirement and shrinking workforce owing to moribund ideas and political motives of trade unions. Consequently the welfare of the elderly would be jeopardised, while at the same time facing economic difficulties owing to the age composition of the population.
A strong community awareness of the emerging implications and problems of ageing and new thinking on the emerging problem need to be developed. An effective awareness programme would prepare individuals and families to cope with impending longevity. Community-based programmes to care for the elderly are vital to supplement state assistance.