The gradual and largely irreversible change towards an older population is one of the main challenges facing the world in the coming decades. According to the United Nations Population Division, the number of people 65 years of age or older is expected to be doubled in the next two and a half decades, until reaching 1,580 million in 2050. It is expected that the proportion of the world’s population over 65 will grow from 10% this year to 16% in 2050, since in many countries significantly superior rates are expected.
As the following graph shows, Asia is at the head of this trend and it is expected that Hong Kong, South Korea, Taiwan and Japan have the highest proportion of people 65 years of age or older in 2050. Although Japan is famous for its elderly population and currently heading the list, other Asian economies are in the middle of a significant change, since life expectancy has improved quickly in recent decades and continues to do so. By 2050, approximately 40% of the population of Taiwan, Hong Kong, South Korea and Japan are 65 years or older.
“The aging of the population is a worldwide defining trend of our time,” writes the United Nations Department of Economic and Social Affairs in its World Report 2023 report, describing it as “great success” that brings both challenges and opportunities. One of the main challenges for countries with aging populations is to ensure that the economy can meet the consumption needs of a growing number of older people. This can be achieved by raising the legal retirement age, eliminating obstacles to the voluntary participation of the elderly in the active population or guaranteeing equitable access to education, health care and labor opportunities throughout life, which can contribute to promoting economic security at more advanced ages.
Especially the countries that are in the early stages of the demographic change have the opportunity to plan and apply the appropriate measures in advance, to effectively manage the challenges involved in the aging of the population.