Aging populations in Georgia and Sri Lanka are raising concerns about the sustainability of pension systems, as highlighted in a report released at the Asian Development Bank’s 57th Annual Meeting in Tbilisi, Georgia. Aiko Kikkawa, Senior Economist at the Asian Development Bank, noted that while pension coverage is relatively high, declining birth rates necessitate greater contributions from younger generations to ensure the financial viability of these systems in the long term.
The report, “Aging Well in Asia: Asian Development Policy Report,” underscores the unpreparedness of Developing Asia and the Pacific to meet the well-being needs of its rapidly aging population. Challenges such as low pension coverage, health issues, social isolation, and limited access to essential services are becoming more pronounced as the region’s older demographic grows.
By 2050, the number of people aged 60 and above in Developing Asia and the Pacific is expected to nearly double, posing significant demands on pension, welfare, and healthcare systems. However, there is also an opportunity for increased productivity from older individuals, which could positively impact the region’s gross domestic product by an average of 0.9%.
To address these challenges and harness the potential benefits of an aging population, the report recommends comprehensive policy reforms. These include expanding access to pension and health insurance, improving healthcare infrastructure, providing basic labor protections for older informal workers, and promoting lifelong learning and skills development to support older people in staying healthy and productive.