1. C HALLENGES OF AN AGING SOCIETY B ALTIC D YNAMICS 2015: XX A NNUAL I NTERNATIONAL C ONFERENCE 27-29 M AY, 2015 K AUNAS Prepared by Čiutienė Rūta, Railaitė Rasa

2. 2 The two main causes of population aging is: increasing life expectancy; declining birth rates. Over the past 50 years the average life expectancy in the EU increased by approximately 10 years (Eurostat, 2012). For these reasons, the proportion of elderly population is growing and the share of the structural part of the in the youngest population is declining (Kanopienė and Mikulionienė, 2006). Life expectancy Data source : United Nations, 2013

3. F UTURE PROGNOSIS By 2030 the EU will have over 123 million people aged over of 65, while now this rate is 87 million (Eurostat, 2012). By 2050 in the world will live almost 400 million people aged 80 years or older (WHO, n.d). 3

4. P OPULATION AGEING 4 a growing proportion of older people in the general population structure. people live longer and healthier life so they can extend their working years and remain as active society members. ChallengeOpportunity

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6. T HE MAIN IMPACT AREAS OF THE AGEING PROCESS ARE : economic growth social security, labour market and employment, education and health care systems, pension schemes, income distribution and savings, relationships between different generations (Čepinskis & Kanišauskaitė, 2009). 6

7. S OCIETY AGEING AND ECONOMIC GROWTH The aging of society - the macroeconomic problem that requires changes in the fiscal policy ( Cutler et al., 1990 ). Impact areas: economic growth reduction; saving and investment (people are preparing for longer retirement, are investing in pension funds); declining share of working age will have to support a greater number of older people; due to decreased number of working – age people the government will collect less tax, generate higher costs for health care and pension payment ( Tejvan, 2013 ). 7

8. S OCIETY AGEING AND LABOR MARKET More and more people will leave the labor market and retire so the labor force will become increasingly dependent on older persons' participation level. Impact areas and new challenges : qualified personal shortages; avoidance of valuable institutional knowledge losses knowledge transfer assurance ( Davidson, Lepeak, Newman, 2007 ); equal employee’s opportunity assurance ( Dromantienė, Kanopienė, 2004 ), 8

9. S OCIETY AGEING AND EDUCATION On the one hand the falling birth rate and decreasing number of children need a lower costs for young people education, but based on existing demographic trends greater orientation will be dedicated to adults (especially older) skills development and upgrading. 9

10. S OCIETY AGEING AND HEALTH AND SOCIAL CARE SYSTEMS Today‘s senior generation is healthier and better educated than the previous however the increasing number of older people will need more health care costs; increase the demand for health care professionals. A key challenge will be to ensure pension systems to keep adequate pension levels, in order to avoid that older persons not put at risk of poverty. It is also big attention is paid to the issue of retirement age extension. 10

11. S OCIETY AGEING AND ATTITUDES TO ELDERLY Gray, McGregor (2003) identified four negative stereotypes that are usually accompanied by older workers: 1). older workers do not want to learn; 2). these people cannot learn; 3). they have difficulty by assimilating new technology; 4). investments in older workers training bring a low return. In this case, it is often forgotten elderly strengths, such as the available expertise, professional and social competence 11

12. I MPROVEMENTS FOR AN AGEING SOCIETY Health improvement; Job creation and employment system reform; Increasing social contribution and volunteer activities; Fostering age – friendly living environment; strengthening capacity of senior citizen policies Expanding welfare infrastructure for the aged Others ( Seoul Robust with Aging Society, 2010 ). 12

13. S IGNIFICANT AGE - MANAGEMENT AREAS ARE : job recruitment, learning and knowledge management, changing attitudes, flexible working practices, health management, workplace environment and ergonomics. 13 According to Ilmarinen (2012), the working environment should be created in that way, that everyone employee, despice his age could be able to actively pursue both personal and business goals.

14. Thank you for your attention 14