We’ve got a bit of a problem, and that is that we’re growing old. Not that growing old is a problem, it’s usually a pretty good sign that you’ve maybe lived a good life and have been blessed with good health. Where the problem arises is when we grow old at the same time.
Canada, like many other developed countries, is experiencing the challenges posed by an aging population. Some of the key problems associated with this demographic shift are difficult to ignore. Obviously, when a huge chunk of your population leaves the workforce through retirement, then there’s going to be an impact on things like employment, pension plans, insurance policies, health care costs, you name it. Having an aging population, with fewer people paying taxes to maintain social security services and more people drawing upon these same services as they age, creates what may turn out to be an untenable situation for any government of a liberal-democracy.
First, an aging population has an economic Impact It leads to a shrinking workforce and a smaller proportion of people contributing to the economy through taxation and productivity. This can result in a reduced capacity to support social programs, healthcare systems, and pension funds.
With respect to health care costs, older adults tend to have more healthcare needs and chronic conditions, which can place a strain on the healthcare system. As the proportion of elderly individuals increases, healthcare costs are likely to rise significantly, and that potentially leads to shortages in funding and resources.
Pension and social security pressures will begin to become a reality. With more retirees and fewer younger workers, pension systems and social security programs may face financial challenges. The sustainability of these programs may be at risk as the ratio of contributors to beneficiaries changes with more weight given to beneficiaries than contributors.
There are bound to be labor force shortages. An aging population can result in a shortage of skilled workers in various sectors. As older employees retire, there might not be enough younger workers to fill their positions, leading to potential gaps in the labour market. This is one of the reasons why immigration is so important, but we’ll leave a more fulsome exploration of that to another episode.
A decline in the working-age population can also lead to slower economic growth. Fewer workers means fewer people to generate innovation, invest in new ventures, and drive productivity, all of which are essential for a thriving economy.
With more elderly individuals, there will be a greater demand for elder care services, including healthcare facilities, assisted living arrangements, and home care services. This will put a real strain on resources and increase costs for families and governments.
There will need to be changes in housing and infrastructure to accommodate the needs of older individuals. This could include more accessible housing, public transportation, and healthcare facilities.
Factor in social Isolation and loneliness. Older adults can often face social isolation and loneliness, which can negatively impact their mental and physical health. Addressing these issues requires supportive community programs and initiatives. And that requires money and human resources, both of which might be in dwindling supply.
There’s a concept called Intergenerational Equity. Basically, younger generations might perceive there to be a lack of resources and opportunities due to the allocation of resources towards an aging population. This can lead to social tensions and challenges in maintaining a sense of intergenerational fairness. How that may play out is uncertain, but it doesn’t seem to be a huge to stretch to suggest that there may be some friction between age classes in society, with the young resentful of being, as they may see it, weighed down by their older compatriots, what with the huge amount of financial resources that will be needed to accommodate the growth in senior citizens.
It’s inevitable that policymakers and legislators will need to grapple with difficult decisions regarding healthcare funding, pension reforms, and other social programs to ensure their sustainability in the face of an aging population.
We are, as a society, getting older. So all of the issues that are important and relevant to older people become enhanced for the simple reason that, proportionately, we’re coming to a time in this country where those who qualify as “old” form the largest demographic slice of the population pie. And to be old is to be expensive, there’s just really no way to get around that. And how we as a country, as a society, deal with this will shape significantly our budgetary landscape moving forward. How do we accommodate this demographic fact without directing financial resources away from younger cohorts of Canadians? The solution, or solutions, to this problem will be top-of-mind for policy-makers in the years ahead as we slowly, yet inexorably, grow older.
To address these challenges, governments, communities, and individuals need to work together to develop comprehensive strategies that include policies for promoting healthy aging, increasing workforce participation, investing in healthcare and social services, and fostering intergenerational understanding and cooperation.
And though some may not like the sound of it, immigration. Importing additional people to become part of the contributing class, part of the innovative class, and part of any solution or group of solutions that adequately ensure that all Canadians can reap the benefits of their contributions and the contributions of others, regardless of their age.
In Canada, we have a history, at least relatively recently, of looking out for our own and for one another. The aging population, and how we go about dealing with it and servicing it, will say a lot about who we are and what it means to be Canadian.
NEWSMAGRENFREW 