Ageing to sap working-age population
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By 2040, the graying of the population could shrink the number of working-age adults by more than 15 per cent in South Korea and more than 10 per cent in China, Thailand and Japan, according to a new World Bank report.
The report "Live Long and Prosper: Aging in East Asia and Pacific" finds that in China alone, that would translate into a net loss of 90 million workers.
Across East Asia and Pacific, 211 million people age 65 and over, accounting for 36 per cent of the global elderly population.
World Bank noted that the rapid pace and sheer scale of aging in East Asia raises policy challenges, economic and fiscal pressures, and social risks. Without reforms, for example, pension spending in the region is projected to increase by eight to 10 per cent of gross domestic product by 2070. Meanwhile, most East Asian health systems aren’t prepared for age-related spending, as cancer, heart disease, diabetes and other chronic illnesses could account for 85 per cent of all disease burdens by 2030. In addition, today’s older population is less likely than previous generations to have adequate family support.
