EU Commission Public Seminar April 24th, Economic Aspects of Ageing in Europe Dr. Brenda Gannon Irish Centre for Social Gerontology NUI Galway

2 Context: setting the scene Median age in Europe predicted to increase to by 2050, was 33.1 in 1998 and 29.2 in 1950 Old age dependency: by 2050 ratio of working age to retirees will change from 4 to 1, to, 2 to 1 Currently OECD estimates that 39% of those aged are working Health care costs: public spending on health and long term care will double by 2050, 13% of GDP compared to 6.7% today

3 Socio-economic aspects of Ageing Education Work/ Retirement Social Inclusion Cost of Healthcare Poverty/ Wealth Pensions

4 Social Inclusion Social participation Poverty Employment Health care

5 Labour market Incentives required – social welfare transfers to encourage atypical levels of employment Social partnership Retirement age? (Germany) Pensions?

6 Healthcare Cost of illness, cost-effectiveness of treatments/drugs Resource allocation issues Payment: public sector, private insurance, out of pocket payments End-of-life care Long term care Quality issues

7 Poverty European wide strategy led by National Anti-Poverty Strategies EU aim to guarantee adequate income to ensure decent standard of living Core set of poverty indicators produced regularly Study in 2004 found Scandinavian model provides best protection against poverty Based on social security system that focuses on increased labour force participation, women working full-time and a higher pension age However this does not suit every member state and their social security system and cultural norms

8 Pensions Need to plan now to ensure sustainability of public finances and adequate incomes at retirement Increases in flat rate pensions unsustainable Private pension coverage is important Financial literacy is low and people need to be educated on retirement savings

9 Life long learning Active ageing policy recognise the impact of knowledge economy on those who are past retirement age Should recognise: Need of older people for continued learning in time of technological change Contribution older people can make to build a socially cohesive society as active citizens Danger of social exclusion of older people if denied opportunity to participate Needs of carers to be considered

10 Specific questions faced by policy-makers include: How do we help older people remain independent and active? How do we best balance the role of the family and the state when it comes to caring for older people who need assistance? How can we best make use of older people’s wisdom, experience and talents? Now that people are living longer, how can we improve the quality of life in old age?