The Asian Development Bank (ADB) has issued a dire warning, stating that the developing nations of Asia and the Pacific are ill-equipped to meet the needs of their rapidly aging populations. 

The region's growing elderly demographic faces numerous challenges, including low pension coverage, health issues, social isolation, and limited access to essential services. Urgent and comprehensive policy reforms are required to ensure the welfare of older individuals, as highlighted in the recently released ADB report titled "Aging Well in Asia: Asian Development Policy Report" during the bank's 57th Annual Meeting, held from May 2 to 5 in Tbilisi, Georgia.

By 2050, the number of individuals aged 60 and above in developing Asia and the Pacific is projected to nearly double, reaching a staggering 1.2 billion, approximately a quarter of the total population. With this demographic shift, there is an urgent need for adequate pension and welfare programs, along with improved healthcare services.

The report also emphasises the potential for a "silver dividend" - additional productivity from older individuals that could potentially increase the region's gross domestic product by an average of 0.9 per cent.

ADB chief economist Albert Park highlighted the need for prompt government action to prepare for the challenges.

He stressed that policies should focus on lifelong investments in health, education, skills, and financial preparedness for retirement. Additionally, nurturing family and social ties is crucial to foster the well-being and productivity of older people, maximising their contribution to society.

The report reveals a distressing statistic: 40 per cent of individuals aged over 60 in Asia and the Pacific lack access to any form of pension. This issue disproportionately affects women, who often engage in unpaid domestic work. Consequently, many older individuals are forced to continue working well beyond retirement age merely to make ends meet. Among those still employed at age 65 or older, a staggering 94 per cent work in the informal sector, which typically fails to provide basic labour protections or pension benefits.

The challenges faced by the aging population extend beyond financial concerns. Physical and mental health issues become more prevalent with age.

The report illustrates that approximately 60 per cent of older individuals in Asia and the Pacific do not receive regular health checks, and 31 per cent report depressive symptoms resulting from illness, social isolation, and economic insecurity. Older women in the region are particularly susceptible to health problems, including depression, diabetes, and hypertension, compared to their male counterparts.

To address these pressing challenges, the report advocates for a range of policy measures. 

These include government-assisted health insurance and pension plans, improved health infrastructure, and the provision of free annual check-ups and lifestyle evaluations. The report also calls for policymakers to strive towards universal healthcare coverage and extend basic labour protections to older individuals working in the informal sector.

The report concludes by highlighting the potential for economic growth if policies are enacted to support healthy and economically secure aging. By adopting measures such as flexible retirement ages, promoting health among the elderly, providing suitable work opportunities, and facilitating lifelong learning and skills development, economies in the region can harness the productivity and expertise of older individuals for a longer duration.

Aiko Kikkawa, a senior economist with the ADB and one of the authors of the report, told The Post that Cambodia is not facing an imminent critical condition when compared to neighbouring nations like Thailand or Vietnam. 

She explained that countries with smaller populations, such as Cambodia, can transition more rapidly. Did however emphasise the importance of early preparation in order to support the population effectively and avoid some of challenges associated with an aging society.

Kikkawa stressed the need for collaboration with the current young population, and the encouragement of mindfulness about their health, careers, and the importance of retirement savings. She emphasised the importance of proactive measures to ensure the younger generation is adequately prepared for their future.

“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,” she said.

“[You] need to work with current young people, try to ask them mindful with their health, about their careers, are they saving enough. You want the younger group to be able to prepare for their retirement,” she added.

In a press release, the ADB reaffirmed its commitment to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. The bank aims to eradicate extreme poverty while addressing the challenges posed by the region's aging population.

ADB chief economist Park highlighted the ADB's support for modernising social protection programmes for various governments. This includes improving information systems, digitalisation and data collection to enhance access to resources during crises like the Covid-19 pandemic.

The ADB also focuses on better coordination of information across different sectors, ministries, and collaborations with partners such as NGOs and community organisations to create integrated systems.