It was not too long ago that Asia was known for having one of the youngest populations in the world. But today many countries in the region are dealing with rapidly ageing societies, with huge economic and social implications.
People aged 65 and above account for about 26% of the population in Japan, 13% in South Korea and 12% in Singapore, according to World Bank data. Thailand is not that far behind with about 11% of its 67 million people falling in that category.
The proportion of "old" Thai people rises to 14% if those aged 60-65 are included, and the UN says that figure will reach 21.5% by 2025.
"Thailand is still moving up the income ladder. Thailand is not yet rich but at the same time, the process of an ageing society has already begun," said Ulrich Zachua, the World Bank's country director for Southeast Asia.
The challenge is made greater because only 5.4% of retired citizens have the means to survive on their own savings or from the sale of their properties, according to the Fiscal Policy Office, a unit of the Finance Ministry.
This has prompted the government to look at new ways of expanding the social safety net and promoting saving to ensure that more citizens have a better retirement lifestyle. However, there are still gaps that need to be filled.
For instance, the 30-baht healthcare programme, funded from taxes, ensures that all citizens can obtain essential services regardless of age or income. However, the availability of doctors in the 30-baht scheme compared with the number of people in need of care does not match, observable from the long lines in famous hospitals under the programme.
The result is a two-tier system in which those who need urgent treatment turn to private hospitals if they have the money or good private insurance plans, while the poor might have to wait months for the same treatment in a public facility.
Promoting retirement saving is one of the best ways of ensuring that the elderly will be able to live more comfortably. The Government Pension Fund, which matches contributions between members and the government, has 970,000 civil service and state agency employee members, and another 2.9 million people are members of provident funds. By 2018, provident funds will be mandatory for all businesses with 100 employees or more. By 2022, every employer with more than 10 workers will have to have a fund.
That still leaves a coverage gap consisting of millions of people in informal, freelance or self-employed occupations, provided they are not enrolled in any other types of public or private pension, insurance or retirement funds. The National Savings Fund, created in August last year, hopes to fill that shortfall. The voluntary programme currently has around 400,000 members but hopes to have 1.5 million by the end of this year.
To government also pays a blanket living allowance of 600 baht a month to all people in their sixties, rising to 700 baht in for those aged 70-plus and 800 baht for those in their eighties. However, only people who are not receiving any public or private pensions or any other kind of funding are eligible.
Authorities are now reviewing the programme, with an eye to stopping payment of the subsidy to those with sufficient income and reallocating this portion to those in greatest financial need. One proposal is to set the qualification level at an income of less than 9,000 baht a month and assets valued below 3 million baht.
Public social insurance is also available to cover health-related costs arising from injuries, illness, baby delivery, child subsidies, decrepitude, senescence and death. It is funded through mandatory payroll deductions from some 10 million people in the workforce. About 2.5 million people claim benefits available from participating hospitals under the Social Security Fund.
The fact remains, however, that many people do not want to retire at age 60. Some need to work longer for financial reasons while others enjoy their occupations and believe they can still contribute. In most Western societies where life expectancies are slightly longer than in Thailand, the retirement age is 65 and in some it is being raised to 67 or even 68.
There are businesses in Thailand that believe employing older workers can bring many benefits, and the Finance Ministry is inclined to agree. It is proposing tax incentives for businesses that employ older people.
Centara Hotels and Resorts is among the businesses that have embraced the idea.
"Employees who have been working in a similar industry or position for a long time often embody a wealth of knowledge and wisdom that can be extremely valuable," says Thirayuth Chirathivat, the CEO of Centara. "I believe that our older workers represent a talented resource that can't be easily replaced."
RICH-COUNTRY POLICIES
As policies and programmes to care for the greying population evolve in Thailand, the most developed economies in Asia are also refining their approaches, albeit with more resources at their disposal.
Even so, data from Statistics Korea show that almost 50% of South Koreans aged 65 and over live in relative poverty, defined as having income less than 50% of the average household income.
A report by the KB Financial Research Institute found that the average retired person needs a minimum of 2.3 million Korean won (US$870) a month. Yet many Koreans have only half that amount. The research shows that heavy spending on children's education prevents many couples from saving as much as they should for retirement.
Korea's National Health Insurance Service (NHIS) places a high emphasis on preventive care so that people develop healthy habits early in life and will not face as many costly health problems as they age. It also provides long-term care insurance to assist elderly people who become physically incapable of performing routine tasks.
However, one area where reform is needed in order to help older people is the Korean labour market, according to a report by the Organization for Economic Co-operation and Development (OECD).
It's common for Korean companies to set a mandatory retirement age below 60 even when the average is 68 years for men and 67 for women, according to the report. This means that people near retirement age have to leave the workforce and reapply to a new employer. They will receive a much lower salary than they earned before because they will be at the bottom of the "seniority" ladder at their new employer.
In Japan, there was a time when younger people cared for their ageing parents almost without exception. Long-term care projects were mostly for low-income people without family support. But due to demographic and economic changes, family-centred care has foundered.
Financial stresses have obliged Japanese women to join the workforce. Consequently, primary caregivers started to become overwhelmed and more elderly people were sent to hospitals, simply because they could not be looked after anywhere else.
A government survey in 1994 showed one in two family carers had subjected frail older relatives to some form of abuse, with one in three acknowledging even feelings of "hatred" toward the person they looked after. The situation was called "caregiving hell". Clearly, a new approach was needed.
Japan introduced a long-term care insurance (LTCI) programme in 2000, funded equally by local and national taxation and insurance premiums paid by everyone aged 40 or over. Users are also expected to contribute a 10% co-payment toward the cost of the service.
The costs are seen as affordable and the popularity of the service has outstripped the government's expectations. That has led to higher co-payments and an increased emphasis on prevention in order to reduce costs in the longer term.
However, according to research by the National Institute of Population and Social Security, the targets have still not been achieved. Lingering problems include non-availability of some services, lack of collaboration between medical institutions, care facilities, and in-home service providers, and an insufficient amount of elderly-friendly housing.
Worryingly, the number of households in Japan where one elderly person is looking after another is increasing.
SINGAPORE ACTION PLAN
In a small city-state of 5 million, the Central Provident Fund (CPF) operates as a comprehensive social security savings plan that provides working Singaporeans and permanent residents a sense of security and confidence for their retirement years.
Policies toward seniors are guided by the principle of personal responsibility in securing well-being in one's old age, with family as the key pillar of support.
CPF contribution rates vary among different accounts depending on the employee age structure and employment sector. Members can withdraw their CPF savings once they turn 55.
Aside from the compulsory fund, Singapore this year launched a "Successful Ageing" action plan encouraging people to lead active lives, with strong bonds within their family and community, according to the Ministry of Health.
"The Action Plan is our response to population ageing. Population ageing is not something to fear, but a great opportunity for Singaporeans to maximise the opportunities from longevity," said Dr Amy Khor, senior minister of state for Health.
For some people, successful ageing means working well beyond the expected retirement age.
Phang Foo Thye, 79, who works part-time as a kitchen assistant at the Novotel Hotel, says working has been beneficial for her mind and body.
"I love working here. Working keeps me active and healthy even in old age," she said on the Facebook page of the Central Singapore Community Development Council.
"In the past, if I walked in the rain, I'd have to see a doctor. After starting to work, I find that I'm less prone to illness."
The new Action Plan covers 12 areas: health and wellness, learning, volunteerism, employment, housing, transport, public spaces, respect and social inclusion, retirement adequacy, healthcare and aged care, protection for vulnerable seniors and research. Another initiative is to transform Singapore into an age-friendly city.
"The Plan will enable us to build Singapore into the best home to age in," said Dr Khor.
PENSION REFORM
For some elderly people, however, the sad truth is that they cannot afford to retire in the country where they worked all their lives and paid taxes, and need to find a lower-cost country to spend their golden years. In many cases, inadequate private pensions have been the main problem.
The OECD, the International Organization of Pension Supervisors (IOPS) and the World Bank have joined forces to gather data on private pensions globally, in the hope of helping both developed and developing countries create better systems.
"Our aim is to develop a more comprehensive and useful database of private pension statistics to guide our efforts to help more countries develop efficient, voluntary systems," said William Price, senior financial specialist at the World Bank.
"By 2050, 80% of the elderly will be living in low-income countries, so we need to begin to expand the reach of our data to address these changing demographics."