By REYNALDO A. DE DIOS
THE world’s population is ageing rapidly! This is indicated in a recent report of the United Nations which disclosed that only seven percent of Asia’s population in 1990 was over 60 years old, but projections show that this proportion will more than double to 16 percent by 2030.
Furthermore, a study by a social security specialist with the International Labor Organization suggests that by 2025, 58 percent of the world’s projected age over 60 would be in Asia. In this estimated population, the over 80 years old would account for 11 percent, with women far outnumbering the men.
The Philippines is also experiencing population growth and an increasing number of elderly people. The Philippine Statistics Authority (PSA) has tabulated a population of 101,582,300 in 2015, to increase to 125,337,5000 in 2030, with males accounting for 67,202,900 and females at 62,134,600.
One advantage for the Philippines is that it has a good average of young people (ages 20-34) at 39,623,800 or 31.62 percent.
In its projection, the PSA reported that by year 2040, the Philippine population would rise to 137,432,200 or an increase of 37 percent over that of year 2015. Of this number, 69,773,800 would be males and 68,198,600 females.
The average life expectancy of today’s Filipinos has increased to 70.01 for males and 75.64 for females compared to 68.81 for males and 74.34 for females a decade ago.
Undoubtedly, people are living longer because of improved living conditions and medical facilities whilst the fertility rate is decreasing due to increasing labor participation of women.
Better education and the use of contraceptives, these two factors continue to affect demography as the number of elderly persons as a percentage of the whole population is rising steadily.
All of these developments have serious socio-economic consequences on the Philippines.
In addition, a growing number of the elderly would also require specialized medical care and this certainly will increase health care costs.
It is a sad fact that as of year 2020, there are more than 8,995,500 senior citizens plus 957,700 over 80 years old, but there are only few geriatricians or specialists to care for the elderly.
The ageing population and the increasing number of pensioners will also have a direct impact on the Social Security System (SSS). Furthermore, the COVID-19 pandemic has caused the closure of thousands of firms. The ensuing unemployment will definitely reduce the contributions to SSS, thus impacting on its resources.
And how about the elderly of the informal sector? They would have to depend on their savings and resources or assistance from their families which cannot be assured entirely given the changing values of the times.
There is therefore a need to institute meaningful changes in the current public pension systems as the growing number of pensioners and the decreasingproportion of paying members will undoubtedly put a heavy strain on available resources.
In conclusion, it must be admitted that the socio-economic issues of the ageing population is a most difficult task to resolve.
What should be developed is for the government to encourage a partnership with the private sector by promoting the growth of the life insurance industrythrough the Insurance Commission. The idea is for the life insurance companies to design an endowment policy which will ensure that the elderly will receive an amount that will be given on their date of retirement. This policy should be free from taxes like the Premium Tax and VAT.
Finally, the premiums to be charged should beactuary-calculated at minimum cost with no commission loading.
*The author is the Editor of Insurance Philippines.
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