The Philippines is aging faster than rich countries and will see a rapid increase in the number of seniors in just 35 years, according to the latest report from the World Bank.
In the report titled Live Long and Prosper: Aging in East Asia and Pacific, the World Bank said the population of Filipinos aged 65 years old and over will increase to 14 percent of the total population in 35 years from the share of 7 percent in 2035.
This, the World Bank said, is faster than what happened in advanced economies such as the United Kingdom, the United States and France at 45 years, 69 years and 115 years, respectively.
“East Asia Pacific has undergone the most dramatic demographic transition we have ever seen, and all developing countries in the region risk getting old before getting rich,” said Axel van Trotsenburg, regional vice president of the World Bank’s East Asia and Pacific Region.
“Managing rapid aging is not just about old people, but requires a comprehensive policy approach across the life cycle to enhance labor-force participation and encourage healthy lifestyles through structural reforms in childcare, education, health care, pensions, long-term care and more,” he added.
However, other Southeast Asian economies are aging even faster than the Philippines. World Bank estimates showed that in 15 years, Vietnam will see the share of its senior population increase to 14 percent.
Other Southeast Asian countries such as Malaysia, Indonesia and Thailand will see the share of their senior population increase to 14 percent in 20 years.
Singapore and Cambodia, meanwhile, will see the population of 65 years old and over increase to 14 percent in 25 years.
The World Bank also said there will be an increase in the working-age population across the region. The Philippines is expected to be among the leaders in the regional increase in terms of percentage share of population and in absolute terms.
Data showed the percentage change and change in absolute terms in population of those aged 15 to 64 years old will be 5 percent, and close to 40 million Filipinos between 2010 and 2040.
“In lower-income green economies and some orange economies with younger populations, the share of the working-age population is not expected to shrink until after 2040,” the World Bank said.
“In absolute terms, Indonesia and the Philippines will account for a large share of the regional increase, but in relative terms, Timor-Leste, Lao PDR, Papua New Guinea and the Philippines will lead the way,” it added.
The World Bank urged countries in the East Asia and the Pacific region, including the Philippines, to undertake a number of reforms to address the rapid aging of their populations.
By 2040, the graying of the population could shrink the number of working-age adults by more than 15 percent in Korea and more than 10 percent in China, Thailand and Japan. In China alone, that would translate into a net loss of 90 million workers.
The rapid pace and sheer scale of aging in East Asia raises policy challenges, economic and fiscal pressures, and social risks.
Without reforms, for example, pension spending in the region is projected to increase by eight to 10 percent of gross domestic product by 2070.
Meanwhile, most East Asian health systems aren’t prepared for age-related spending, as cancer, heart disease, diabetes and other chronic illnesses could account for 85 percent of all disease burdens by 2030.
In addition, today’s older population is less likely than previous generations to have adequate family support.