Key Insights from ADB’s ‘Aging Well in Asia’ Report
The Asian Development Bank’s inaugural report on aging, released on May 2, 2024, highlights significant gaps in health insurance coverage for older adults in India, with only 21% coverage, the lowest in the region. In contrast, South Korea and Thailand have achieved universal health coverage.
Report Analysis
The report reviews well-being among older adults in Asia and the Pacific across four dimensions: health, productive work, economic security, and social engagement. It reveals that while 57% of older individuals in Asia have noncommunicable diseases, just 40% undergo regular health checks, and a substantial portion lacks necessary long-term care and social pensions.
Demographic Trends and Implications
Asia’s aging population is projected to nearly double by 2050, reaching 1.2 billion or 25.2% of the regional population. This demographic shift underscores the urgency for enhanced pension, welfare, and healthcare systems. The report emphasizes the necessity for government investment in health, education, and retirement readiness.
Financial Preparedness and Retirement Finances
A new financial preparedness index indicates high levels of financial readiness among near-old individuals in Japan (86%) and India (73%). However, the majority of retirement finances in India, China, and South Korea derive from private income and assets rather than public support.
Life Expectancy Trends
Projected increases in life expectancy for older individuals are significant, particularly for older women in India, who are expected to see an increase of 6.4 years by 2050. This rise in longevity further highlights the need for robust health and social services.
Challenges in Pension and Health Insurance Access
Around 40% of over-60s in the Asia-Pacific region lack access to pensions, with women particularly affected due to their higher involvement in unpaid domestic work. The labor force participation rate for those aged 65 and over is notably lower for women (15.2%) compared to men (32%).
Indian Initiatives and Recommendations
India is making strides to improve health insurance for older citizens through initiatives like Ayushman Bharat and recent regulatory changes by the IRDAI, which removed the age limit of 65 for buying health insurance. However, there is an urgent need to extend essential services to optimize the health and functional capacity of the aging population.
Recent Developments
Recent collaborations between the Ministry of Finance and ADB, including a USD 200 million loan for a climate resilience project in Assam, highlight ongoing efforts to address broader development challenges in India.
About Asian Development Bank
The ADB, headquartered in Mandaluyong City, Metro Manila, Philippines, was established in 1966. With Masatsugu Asakawa as its president, the bank has 68 member countries, focusing on development in Asia and the Pacific.
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