Are Singapore's poor better off?By Rebecca Lim
BBC News, Singapore
Wan Zaleha smiles as the smell of freshly-brewed coffee permeates the air at a non-profit centre caring for low-income and needy people in Singapore.
For the last six years, from Mondays to Saturdays, the 72-year-old has served as a volunteer, making tea and coffee for residents living in one-room apartments in the neighbourhood.
She lives in one of the one-room apartments - which average 30 sq.m and cost S$23 ($19, £12) to S$205 ($165, £104) a month to rent from the government depending on household income.
She is not employed and receives groceries worth S$70 from individual donors every month.
Singapore's Prime Minister Lee Hsien Loong said in an interview at the World Economic Forum in Davos recently that although it was ''no fun'' being poor in Singapore, people were still ''less badly off'' than the poor in other countries, including the US.
The government ensures that ''everybody starts with some chips'' and not at zero, he added, through education, health care and public housing.
He has also promised more help for low-income households in this year's budget, to be delivered at a parliament sitting on Friday.
The thought of poor people in Singapore may seem a disconnect with its reputation as an Asian financial hub, shoppers' haunt and food haven.
And there is truth to what the PM said, social workers, volunteers and professionals told the BBC, albeit with a hint of discomfort.
If one compares the poor in Singapore to those in countries such as India and China, or even the homeless in the US, it is indeed true that the situation here is not as dire, they said.
''But there are still many people in Singapore who need help,'' said Huang Jing Jing, an active community service volunteer for 30 years. ''Some of them are really struggling. You have to see it for yourself to know.''
''Certainly, poverty is not in your face here,'' said Mr Laurence Lien, chief executive officer of the non-profit National Volunteer & Philanthropy Centre and a newly-appointed Nominated Member of Parliament. ''But yes, it is happening here.''
His friend, a teacher at a primary school in a low-income neighbourhood, told him that on the first day of school half the class of six and seven-year-olds showed up without textbooks because their parents could not afford them.
Healthy income?
In Singapore, however, there is no national poverty line.
In response to a question raised in parliament in November 2011, the Acting Minister for Community Development, Youth and Sports (MCYS) said that the help that the ministry provides ''typically cover the bottom 20th percentile of households, with the flexibility to go beyond if the family's circumstances merit consideration''.
Based on a study published by the Department of Statistics in 2011, the average monthly household income, where at least one member was employed, for the bottom 10th percentile was S$1,581. That of those in the 11th to 20th percentile was S$3,135.
The poorest 1.4 billion people in the world lived on $1.25 or less a day in 2005, according to World Bank estimates published in 2008.
A US Census Bureau report said the lowest quintile of the population had an annual household income of less than $20,000 in 2010. That is comparable to Singapore's numbers.
The US measures poverty using thresholds in dollar value - if a family's income is less than its threshold, then everyone in that family would be considered ''in poverty''.
Based on data at least, the poor in Singapore does come across as being better off than those in other countries. However, the realities on the ground paint a different picture.
Public and social assistance
On paper, Ng Siew Teen has a household income of more than S$2,000. But she said her husband, who works as a driver, had only taken home a month's salary in the last three months. They have two daughters, ages five and four, and are also supporting his 12-year-old daughter from a previous marriage
Ms Ng suffers from a hereditary skin condition and was only able to undergo surgery recently when a donor paid her medical bill. Her husband lost his previous job after he was hospitalised for an operation in October 2011.
In her one-room apartment she fished out unpaid bills, including one for more than S$400 owed in school fees.
''I just want a simple life. But who doesn't want to have money in their pocket?'' she said. ''We didn't even have money to celebrate Chinese New Year.''
Families such as Ms Ng's can apply for aid from a series of public assistance schemes administered by the MCYS. These include subsidies for education as well as financial help for the elderly or disabled who are unable to work.
The ComCare Fund, established in 2005, has helped more than 190,000 through the various schemes. The fund recorded a balance of S$811m in March 2011 and received an additional S$500m in May.
Social assistance is also available, in the form of social services for vulnerable and needy individuals and families. Low-income workers can also tap on wage supplement schemes and job training programmes.
''Singapore has an extensive social safety net,'' said a ministry spokesman. ''Singaporeans enjoy subsidised housing, healthcare and education.''
The challenge, though, lies in getting the help to those who need it the most.
They are often unaware of the aid they can get, or unsure of the process to apply for help, said Zulaiha Bakar, co-ordinator at the non-profit Sunlove Marsiling centre that looks after the needs of about 500 low-income and needy people.
Her job also involves assisting them with phone calls and paperwork. ''Some people may not want to be seen receiving help so they don't come to us,'' she added.
'Still a struggle'
Apart from the ministry, there are a host of non-profit, civil and religious organisations, as well as charitable individuals offering services and donations
But one group that can fall through the cracks, though, are the low-wage-earners who are not eligible for public assistance.
The Singapore government has always maintained its message of ''self-reliance'' and stressed that it cannot adopt a welfare-state system.
Unemployment is low, at 2% and a record 14-year low last year, according to data released last month by the Ministry of Manpower (MOM). But a public housing survey in 2008 showed that a third of one-room apartment residents have no earned income.
The MOM data shows that income for the lowest quintile have increased 11% over the last five years, after taking inflation into account.
But it is still critical to address wage issues, said Mr Lien, as Singapore is ''not a cheap place to live in''.
''You can have a home; you can have shelter,'' he said. ''But it's still a struggle.''
Singapore's Economy
Population: 4.8 million (UN, 2010)
GNI per capita: US $41,430 (World Bank, 2010)
Unemployment rate: 2% average in 2011 for Singapore citizens and residents (Ministry of Manpower, 2012)
Median income (from work): S$3070 at June 2011 for Singapore citizens (Ministry of Manpower, 2012
Public housing in Singapore
The Housing and Development Board (HDB) is Singapore's public housing authority
About 80% of Singaporeans live in public housing
About 90% of them own their apartments
Various financial schemes are available to help those eligible buy a HDB apartment
Low-income families are eligible to rent 1-room and 2-room apartments from the HDB
The average size of a 1-room apartment is 30 sq.m; a 2-room apartment is 40 to 45 sq.m
Monthly rental for a 1-room apartment range from S$23 to S$205, and from S$44 to S$275 for a 2-room apartment, depending on household income and other conditions
Sunday, February 19, 2012
Wednesday, February 15, 2012
An indictment of the PAP’s policy by LKY
At an international conference held in Singapore in 2010, former Minister Mentor Lee Kuan Yew made a shocking admission that our GDP growth was based purely on foreign workers. He said, “We’ve grown in the last five years by just importing labour.” (Emphasis added)
Did Mr Lee just issue a damning indictment of his Government’s economic policy? Never one to mince his words or use them without due care, MM Lee confirmed what Singaporeans had been suspecting all along, that our GDP growth was fueled largely — Mr Lee says exclusively — by a foreign workforce.
The sheer volume of foreigners coming onto this island would give any GDP a bump. The tragedy is that growth has neither improved the quality of our economy nor added value to our workforce. Like the empty calories that alcohol provides but with little nutritional value to the body, our dependence on foreign workers boosts the GDP in the short term but does nothing to raise our productivity and skill-level.
And like alcohol, it is intoxicating and creates dependence as evidenced by the inability of the Government to wean our economy off the easy highs that exploitation of cheap labour brings.
But the GDP is what the PAP relies on. For one thing, our Ministers salaries are GDP-dependent, they reap much reward when this index goes up. This is independent of the fact that Singaporeans are forced to compete unfairly with their foreign counterparts who are able to accept much lower wage levels. Such an arrangement ensures that while the Ministers remain motivated, it crushes the morale and spirit of our workers, not to mention their livelihoods.
Such an approach does nothing to sharpen our economic competitiveness nor does it prepare us for what lies ahead.
The problem is not that the Government is blind to all this. Minister for Manpower Gan Kim Yong explained the need to reduce our reliance on a foreign workforce because this adversely impacted on productivity: “We have to ensure that our productivity improvement will catch up. We don’t have a lot of time — the other countries are improving, our competitors are improving and therefore we have to step up our efforts to do so.”
Mr Lee even announced a time frame to achieve the goal. “The next five years, we have decided we will tier down our need for foreign workers,” he promised in 2010.
The real problem is that the PAP does not have the will and the courage to go through with such its own plan because like someone who is inebriated, the party is not thinking beyond the next drink. The temptation is simply too powerful.
As quickly as the words left the MM’s mouth, the Ministry of Manpower was taking them back. In 2011 it reversed course and recruited 85,000 foreign workers, up 38 percent from 53,000 in 2010.
Our economy is drifting. Worse, the Government doesn’t have any idea on how we should proceed. The fact that we have had four recessions in the past 15 years is indicative of the quality of the PAP’s economic policy.
We went into a deep downturn following the Asian financial crisis in 1997. Before we could fully recovery, the economy plunged by -1.2 percent in 2001 and did not receive until 2003. In 2008, we were hit again and registered the steepest decline in GDP growth in our history; the GDP shrank 16.4 percent between October and December, in 2008. The next year it rebounded to 14.9 percent. But even before anyone had time to say “hurray” we were back down in a slump in 2011 and continuing into the present.
These wild economic gyrations make the roller-coaster rides at Universal Studios look tame. They tell us that the PAP is not in control. Worse, they signal a ruling party bereft of ideas and drunk on foreign labour.
Mr Lee just confirmed it.
.http://www.tremeritus.com/2012/02/15/an-indictment-of-the-paps-policy-by-lky/
Did Mr Lee just issue a damning indictment of his Government’s economic policy? Never one to mince his words or use them without due care, MM Lee confirmed what Singaporeans had been suspecting all along, that our GDP growth was fueled largely — Mr Lee says exclusively — by a foreign workforce.
The sheer volume of foreigners coming onto this island would give any GDP a bump. The tragedy is that growth has neither improved the quality of our economy nor added value to our workforce. Like the empty calories that alcohol provides but with little nutritional value to the body, our dependence on foreign workers boosts the GDP in the short term but does nothing to raise our productivity and skill-level.
And like alcohol, it is intoxicating and creates dependence as evidenced by the inability of the Government to wean our economy off the easy highs that exploitation of cheap labour brings.
But the GDP is what the PAP relies on. For one thing, our Ministers salaries are GDP-dependent, they reap much reward when this index goes up. This is independent of the fact that Singaporeans are forced to compete unfairly with their foreign counterparts who are able to accept much lower wage levels. Such an arrangement ensures that while the Ministers remain motivated, it crushes the morale and spirit of our workers, not to mention their livelihoods.
Such an approach does nothing to sharpen our economic competitiveness nor does it prepare us for what lies ahead.
The problem is not that the Government is blind to all this. Minister for Manpower Gan Kim Yong explained the need to reduce our reliance on a foreign workforce because this adversely impacted on productivity: “We have to ensure that our productivity improvement will catch up. We don’t have a lot of time — the other countries are improving, our competitors are improving and therefore we have to step up our efforts to do so.”
Mr Lee even announced a time frame to achieve the goal. “The next five years, we have decided we will tier down our need for foreign workers,” he promised in 2010.
The real problem is that the PAP does not have the will and the courage to go through with such its own plan because like someone who is inebriated, the party is not thinking beyond the next drink. The temptation is simply too powerful.
As quickly as the words left the MM’s mouth, the Ministry of Manpower was taking them back. In 2011 it reversed course and recruited 85,000 foreign workers, up 38 percent from 53,000 in 2010.
Our economy is drifting. Worse, the Government doesn’t have any idea on how we should proceed. The fact that we have had four recessions in the past 15 years is indicative of the quality of the PAP’s economic policy.
We went into a deep downturn following the Asian financial crisis in 1997. Before we could fully recovery, the economy plunged by -1.2 percent in 2001 and did not receive until 2003. In 2008, we were hit again and registered the steepest decline in GDP growth in our history; the GDP shrank 16.4 percent between October and December, in 2008. The next year it rebounded to 14.9 percent. But even before anyone had time to say “hurray” we were back down in a slump in 2011 and continuing into the present.
These wild economic gyrations make the roller-coaster rides at Universal Studios look tame. They tell us that the PAP is not in control. Worse, they signal a ruling party bereft of ideas and drunk on foreign labour.
Mr Lee just confirmed it.
.http://www.tremeritus.com/2012/02/15/an-indictment-of-the-paps-policy-by-lky/
Wednesday, February 1, 2012
World's Fastest Ageing Populations - yahoo news
The world is rapidly aging. A whopping two billion people will be 60 years and older by 2050, more than triple the number in 2000, according the World Health Organization.
This demographic change has major implications for the global economy. Some of the world's biggest economies are facing rising health-care costs, a shrinking workforce, higher pension costs and diminishing fertility rates. Many countries have already begun adapting to their increasingly aging populations by raising the retirement age, reducing pension benefits and spending more on elderly care.
We've come up with a list of countries with the starkest gap between the number of old and the number of young. We calculated the number of people aged 65 and older for every person 14 years and younger. We've also provided statistics on the percentage of the total population aged 65 and above as well as the percentage aged 14 years and below.
The population numbers are from the CIA World Factbook, while we used organizations such as the World Bank, United Nations (UN), and International Monetary Fund (IMF) to illustrate demographic trends.
So, which countries have the biggest gap between old and young? Click ahead to find out
10. Latvia
Old/young ratio: 1.251:1
65 years & over: 16.9%
0-14 years: 13.5%
With one of the world's oldest populations, Latvia is expected to lose more than a tenth of its of 2.3 million people between 2000 and 2025 , according to the World Bank.
The Baltic state is also the only country on our top 10 list that has more than double the number of elderly women (252,000) than men (122,000). In fact, women live 10 years longer than men in Latvia, which is among the highest gaps in life expectancy between genders in the European Union, according to the United Nations. On the whole, the country has seen its population decline at a rate of 0.5 percent annually from 2006 to 2010, while the percentage of people aged 65 and over has steadily increased.
Not only is Latvia facing a rapidly aging population, the country's ability to support the old took a big hit during the 2009 financial crisis, when its economy suffered the deepest recession in the EU, nosediving 18 percent.
The government had to drastically cut its budget for a $10.2 billion bailout loan from the International Monetary Fund (IMF) and EU . The austerity measures, which sparked a strong reaction from protesters (pictured), included a 10 percent cut in old-age pensions, and a massive 70 percent reduction in pensions for those still working. Pensioners account for 25 percent of Latvia's population, while the labour force makes up only 43 percent, according to former Finance Ministry State Secretary Martins Bicevskis.
Photo: Christian Kober | Getty Images
9. Slovenia
Old/young ratio: 1.253:1
65 years & over: 16.8%
0-14 years: 13.4%
The retirement age in Slovenia is currently among the lowest in the EU, at 57 for women and 58 for men.
Part of the former Yugoslav republic, which was once considered a successful model for post-communist transition, is now facing a series of credit rating downgrades as its economy struggles with a high budget deficit, political instability and an expensive state pension system. Government reform to raise Slovenia's retirement age was rejected in a referendum in June of last year, dealing a major blow to the country's plans to control its ballooning public debt. The World Bank predicts the average age for Slovenia will be 47.4 years in 2025 — among the oldest in the world.
The rapidly aging population has been a big burden on Slovenia's budget. From 2003 to 2009, the average annual increase in health expenditure was 7.1 percent, while GDP growth in the same period was 5.9 percent , according to the government figures. In 2009 alone, the nominal health expenditure grew by 7.1 percent, while Slovenia's GDP contracted 5.3 percent. Despite the increase in health-care spending, Slovenia is still below the average for OECD countries. Total health spending accounted for 9.3 percent of its GDP, compared to average of 9.5 percent in OECD countries in 2009.
Sweden. Photo: Jonathan Nackstrand | AFP | Getty Images
8. Sweden
Old/young ratio: 1.27:1
65 years & over: 19.7%
0-14 years: 15.4%
Sweden is the only country in Scandinavia, a region heralded for its quality of life, to make the top 10 list of the world's oldest populations.
The country's elderly population has steadily increased from 17 percent of the total population in 2006 to 18 percent in 2010, while its population of people aged up to 14 years has remained at 17 percent since 2005, according to the World Bank. Seniors will account for nearly 30 percent of the Swedish population by 2040, according the Global Aging Preparedness (GAP) Index. But, despite its aging population, a recent study by asset management firm Allianz Global Investors showed that Sweden has the second-most sustainable pension system out of 44 major economies, thanks to a highly developed and privately funded system which lessens the burden on public finances. Swedes contribute 18.5 percent of their income to the national pension system.
In December, the government pledged $617 million over the next few years to improve elderly care after a series of highly publicized senior care scandals in recent months. An IMF study from June 2011 has ranked Sweden as the 7th country out of the world's 20 major economies to have the best living standard for the elderly.
Austria. Photo: Westend61 | Getty Images
7. Austria
Old/young ratio: 1.3:1
65 years & over: 18.2%
0-14 years: 14%
Austria's population has the fifth-highest percentage of people aged 65 and over in the world, tied with European counterparts Sweden, Portugal, Latvia and Bulgaria, according to the World Bank.
The country's 65 and over population has gone up from 16 percent of the total population in 2006 to 18 percent in 2010, while its population of people aged 14 and under has declined from 16 percent to 15 percent in the same period. Public pension spending was 12.3 percent of Austria's GDP in 2008, over 5 percent higher than in the average of OECD countries. Austria also has only 3.5 people of working age for every person aged 65 and over, which is below the OECD average of 4.2 workers.
Men in Austria can currently retire as early as 62, while women can retire at 57. There are nearly 245,000 more women aged 65 and over in the country than men, according to the CIA Factbook. The OECD warned Austria last year that the country needs to cut government debt by curbing early retirement and eliminating early pensions. Last week, the country lost its top-notch credit rating, when it was downgraded by Standard & Poor's to AA+.
Bulgaria. Photo: Dimitar Dilkoff | AFP | Getty Images
6. Bulgaria
Old/ young ratio: 1.31:1
65 years & over: 18.2%
0-14 years: 13.9%
Bulgaria is one of three Eastern European countries to make the list of the world's 10 oldest populations. It is also one of only 16 countries in the world that saw their populations decline by more than 5,000 people between 2000 and 2005, according to the World Bank.
Bulgaria's elderly population increased from 17 percent in 2006 to 18 percent in 2010, while its young population aged up to 14 years has remained steady at 14 percent of the total population since 2003, according to the World Bank. By 2025, more than one in five Bulgarians will be older than 65, up from just 13 percent in 1990.
With its rapidly aging population, the Bulgarian government raised the official retirement age by four months starting this year for every year until it reaches 63 for women and 65 for men, up from 60 and 63 respectively. The government backtracked from plans to raise the retirement age by one year in 2012 after thousands of workers stormed through the capital in protest . For its 2.5 million workers, Bulgaria has 2.2 million retired people. It is also the poorest member of the EU, with the lowest GDP per capita, according to Eurostat.
Greece. Photo: Louisa Gouliamaki | AFP | Getty Images
5. Greece
Old/young ratio: 1.38:1
65 years & over: 19.6%
0-14 years: 14.2%
Greece has the world's weakest pension system, crippled by high levels of sovereign debt, low retirement ages and a high ratio of pensioners to workers, according a recent study by Allianz Global Investors.
The country's population of people aged 65 and over has increased from 18 percent in 2006 to 19 percent in 2010, while the group of people aged between 15 and 64 has remained at 67 percent since 2004, according to the World Bank. With nearly one-quarter of Greece's 11 million people retired, pension payments are a major burden on the economy, which is being kept afloat by the EU and IMF bailout funds.
The country made headlines last year for welfare fraud when the government revealed that thousands of dead Greeks were still receiving pensions . Data in June showed that 4,500 deceased civil servants continued to receive pension payments, costing the taxpayer $20.5 million a year. Pressured by international lenders, the country has been forced to make sweeping reforms of its pension system. Now, fewer than 10 percent of Greeks can retire before 65. In 2010, some Greeks could retire as early as 40 years of age on a reduced pension.
Italy. Photo: Giorgio Cosulich | Getty Images
4. Italy
Old/young ratio: 1.47:1
65 years & over: 20.3%
0-14 years: 13.8%
People over the age of 60 will make up a whopping 40 percent of Italy's population by 2040 compared to over 25 percent in 2007, according the GAP Index.
The country has seen its elderly population remain at 20 percent from 2005 to 2010, while the younger population of people aged 0 to 14 years hasn't grown since 1999, remaining at 14 percent. Italy's public spending on pensions is the highest in the EU, at over 16 percent of GDP compared to an average of 11 percent for the bloc.
Once considered one of the most generous pension systems in Europe, Italy's government took a hatchet to the current scheme by announcing a series of austerity measures to reform the welfare system in December . The country has one of the lowest employment rates in the region, in part because people retire long before the European average. Only 37.4 percent of Italians aged 55 to 64 still work, compared to an EU average of 47.5 percent. The new measures would see the minimum pension age for both men and women raised in stages to 66 by 2018 with incentives to keep workers employed until 70.
Germany. Photo: Thomas Grass | Getty Images
3. Germany
Old/young ratio: 1.54:1
65 years & over: 20.6%
0-14 years: 13.3%
Germany is the most populous European country and the second-biggest economy to make the list of the world's oldest populations.
The country has seen its 65 and over population increase from 19 percent in 2006 to 20 percent in 2010, while the young generation aged 0 to 14 has declined from 14 percent to 13 percent in the same period, according to the World Bank. The percentage of people aged 15 to 64 has gone down to 66 percent in 2010, compared to 69 percent two decades ago, in part explaining the labor shortage the country faces in some sectors. Eurostat predicts there will be less than two people of working age for every retired person in Germany by 2040.
While the European economic power maintains a healthy economy for now, having among the worst demographic stats in the world could lead to rising public spending and debt in years to come. Germany has nearly 2.3 million more women aged 65 and over compared to men. Despite women living longer, they also typically have smaller pension savings than men at retirement. On the whole, nearly 60 percent of Germans between the ages of 55 and 64 work, compared to just 40.7 percent of Greeks, according to EU statistics.
Japan. Photo: Ryouchin | Getty Images
2. Japan
Old/young ratio: 1.74:1
65 years & over: 22.9%
0-14 years: 13.1%
Japan is the largest economy to make the list of the world's oldest populations. It is also the only country outside of Europe in the rankings.
With the highest life expectancy in the world at 86, people aged 60 and over will account for over 43 percent of Japan's population by 2040, according to the GAP Index. Currently, one in four people are over the age of 65. On the other end, its population of people aged 15 to 64 fell four percentage points in the 10-year period from 2000 to 2010, while people aged up to 14 years fell two percentage points in the same period. Last year, the country made headlines when data showed that its population grew at its slowest pace since 1920 in the five years to 2010.
Slowing population growth indicates that Japan will find it more difficult to spread its debt burden and the rising costs of an aging society, among the working population. Japan is already the most indebted industrial nation with a public debt that is double its $5 trillion economy. Lonely elderly people have also become a growing social problem in the country. In 2010, 4.6 million elderly lived alone in Japan. The number of seniors that died at home alone increased by 61 percent between 2003 and 2010, according to official figures. In August, the government introduced measures for postmen to check up on people over 65 once a month by handing them seasonal greeting cards.
Monaco. Photo: Valery Hache | AFP | Getty Images
1. Monaco
Old/young ratio: 2.18:1
65 years & over: 26.9%
0-14 years: 2.18%
Monaco, one of the world's most densely populated countries, is home to the oldest population. It leads eight other European countries in the top 10 list. But the country is also a bit of a statistical anomaly because its status as a tax haven makes it a big draw for the wealthy and the retired rich.
With an estimated population of 30,539, the country saw its population decline in 2011 by 0.12 percent, according the to CIA Factbook. Only around 8,000 people are citizens of the city-state. The proportion of Monaco's population aged 65 and over is 26.9 percent, the highest in Western Europe, where the average is 16.5 percent, according to a 2011 study by research firm Euromonitor.
The median age of Monaco's population is 49.4 years, according to the CIA Factbook. With its older demographic, Monaco spent just 1.2 percent of its GDP in 2009 on education, according to the World Bank. In an effort to attract young professionals and entrepreneurs to boost its economy, Prince Albert launched a new consular
10. Latvia
Old/young ratio: 1.251:1
65 years & over: 16.9%
0-14 years: 13.5%
With one of the world's oldest populations, Latvia is expected to lose more than a tenth of its of 2.3 million people between 2000 and 2025 , according to the World Bank.
The Baltic state is also the only country on our top 10 list that has more than double the number of elderly women (252,000) than men (122,000). In fact, women live 10 years longer than men in Latvia, which is among the highest gaps in life expectancy between genders in the European Union, according to the United Nations. On the whole, the country has seen its population decline at a rate of 0.5 percent annually from 2006 to 2010, while the percentage of people aged 65 and over has steadily increased.
Not only is Latvia facing a rapidly aging population, the country's ability to support the old took a big hit during the 2009 financial crisis, when its economy suffered the deepest recession in the EU, nosediving 18 percent.
The government had to drastically cut its budget for a $10.2 billion bailout loan from the International Monetary Fund (IMF) and EU . The austerity measures, which sparked a strong reaction from protesters (pictured), included a 10 percent cut in old-age pensions, and a massive 70 percent reduction in pensions for those still working. Pensioners account for 25 percent of Latvia's population, while the labour force makes up only 43 percent, according to former Finance Ministry State Secretary Martins Bicevskis.
Photo: Christian Kober | Getty Images
9. Slovenia
Old/young ratio: 1.253:1
65 years & over: 16.8%
0-14 years: 13.4%
The retirement age in Slovenia is currently among the lowest in the EU, at 57 for women and 58 for men.
Part of the former Yugoslav republic, which was once considered a successful model for post-communist transition, is now facing a series of credit rating downgrades as its economy struggles with a high budget deficit, political instability and an expensive state pension system. Government reform to raise Slovenia's retirement age was rejected in a referendum in June of last year, dealing a major blow to the country's plans to control its ballooning public debt. The World Bank predicts the average age for Slovenia will be 47.4 years in 2025 — among the oldest in the world.
The rapidly aging population has been a big burden on Slovenia's budget. From 2003 to 2009, the average annual increase in health expenditure was 7.1 percent, while GDP growth in the same period was 5.9 percent , according to the government figures. In 2009 alone, the nominal health expenditure grew by 7.1 percent, while Slovenia's GDP contracted 5.3 percent. Despite the increase in health-care spending, Slovenia is still below the average for OECD countries. Total health spending accounted for 9.3 percent of its GDP, compared to average of 9.5 percent in OECD countries in 2009.
Sweden. Photo: Jonathan Nackstrand | AFP | Getty Images
8. Sweden
Old/young ratio: 1.27:1
65 years & over: 19.7%
0-14 years: 15.4%
Sweden is the only country in Scandinavia, a region heralded for its quality of life, to make the top 10 list of the world's oldest populations.
The country's elderly population has steadily increased from 17 percent of the total population in 2006 to 18 percent in 2010, while its population of people aged up to 14 years has remained at 17 percent since 2005, according to the World Bank. Seniors will account for nearly 30 percent of the Swedish population by 2040, according the Global Aging Preparedness (GAP) Index. But, despite its aging population, a recent study by asset management firm Allianz Global Investors showed that Sweden has the second-most sustainable pension system out of 44 major economies, thanks to a highly developed and privately funded system which lessens the burden on public finances. Swedes contribute 18.5 percent of their income to the national pension system.
In December, the government pledged $617 million over the next few years to improve elderly care after a series of highly publicized senior care scandals in recent months. An IMF study from June 2011 has ranked Sweden as the 7th country out of the world's 20 major economies to have the best living standard for the elderly.
Austria. Photo: Westend61 | Getty Images
7. Austria
Old/young ratio: 1.3:1
65 years & over: 18.2%
0-14 years: 14%
Austria's population has the fifth-highest percentage of people aged 65 and over in the world, tied with European counterparts Sweden, Portugal, Latvia and Bulgaria, according to the World Bank.
The country's 65 and over population has gone up from 16 percent of the total population in 2006 to 18 percent in 2010, while its population of people aged 14 and under has declined from 16 percent to 15 percent in the same period. Public pension spending was 12.3 percent of Austria's GDP in 2008, over 5 percent higher than in the average of OECD countries. Austria also has only 3.5 people of working age for every person aged 65 and over, which is below the OECD average of 4.2 workers.
Men in Austria can currently retire as early as 62, while women can retire at 57. There are nearly 245,000 more women aged 65 and over in the country than men, according to the CIA Factbook. The OECD warned Austria last year that the country needs to cut government debt by curbing early retirement and eliminating early pensions. Last week, the country lost its top-notch credit rating, when it was downgraded by Standard & Poor's to AA+.
Bulgaria. Photo: Dimitar Dilkoff | AFP | Getty Images
6. Bulgaria
Old/ young ratio: 1.31:1
65 years & over: 18.2%
0-14 years: 13.9%
Bulgaria is one of three Eastern European countries to make the list of the world's 10 oldest populations. It is also one of only 16 countries in the world that saw their populations decline by more than 5,000 people between 2000 and 2005, according to the World Bank.
Bulgaria's elderly population increased from 17 percent in 2006 to 18 percent in 2010, while its young population aged up to 14 years has remained steady at 14 percent of the total population since 2003, according to the World Bank. By 2025, more than one in five Bulgarians will be older than 65, up from just 13 percent in 1990.
With its rapidly aging population, the Bulgarian government raised the official retirement age by four months starting this year for every year until it reaches 63 for women and 65 for men, up from 60 and 63 respectively. The government backtracked from plans to raise the retirement age by one year in 2012 after thousands of workers stormed through the capital in protest . For its 2.5 million workers, Bulgaria has 2.2 million retired people. It is also the poorest member of the EU, with the lowest GDP per capita, according to Eurostat.
Greece. Photo: Louisa Gouliamaki | AFP | Getty Images
5. Greece
Old/young ratio: 1.38:1
65 years & over: 19.6%
0-14 years: 14.2%
Greece has the world's weakest pension system, crippled by high levels of sovereign debt, low retirement ages and a high ratio of pensioners to workers, according a recent study by Allianz Global Investors.
The country's population of people aged 65 and over has increased from 18 percent in 2006 to 19 percent in 2010, while the group of people aged between 15 and 64 has remained at 67 percent since 2004, according to the World Bank. With nearly one-quarter of Greece's 11 million people retired, pension payments are a major burden on the economy, which is being kept afloat by the EU and IMF bailout funds.
The country made headlines last year for welfare fraud when the government revealed that thousands of dead Greeks were still receiving pensions . Data in June showed that 4,500 deceased civil servants continued to receive pension payments, costing the taxpayer $20.5 million a year. Pressured by international lenders, the country has been forced to make sweeping reforms of its pension system. Now, fewer than 10 percent of Greeks can retire before 65. In 2010, some Greeks could retire as early as 40 years of age on a reduced pension.
Italy. Photo: Giorgio Cosulich | Getty Images
4. Italy
Old/young ratio: 1.47:1
65 years & over: 20.3%
0-14 years: 13.8%
People over the age of 60 will make up a whopping 40 percent of Italy's population by 2040 compared to over 25 percent in 2007, according the GAP Index.
The country has seen its elderly population remain at 20 percent from 2005 to 2010, while the younger population of people aged 0 to 14 years hasn't grown since 1999, remaining at 14 percent. Italy's public spending on pensions is the highest in the EU, at over 16 percent of GDP compared to an average of 11 percent for the bloc.
Once considered one of the most generous pension systems in Europe, Italy's government took a hatchet to the current scheme by announcing a series of austerity measures to reform the welfare system in December . The country has one of the lowest employment rates in the region, in part because people retire long before the European average. Only 37.4 percent of Italians aged 55 to 64 still work, compared to an EU average of 47.5 percent. The new measures would see the minimum pension age for both men and women raised in stages to 66 by 2018 with incentives to keep workers employed until 70.
Germany. Photo: Thomas Grass | Getty Images
3. Germany
Old/young ratio: 1.54:1
65 years & over: 20.6%
0-14 years: 13.3%
Germany is the most populous European country and the second-biggest economy to make the list of the world's oldest populations.
The country has seen its 65 and over population increase from 19 percent in 2006 to 20 percent in 2010, while the young generation aged 0 to 14 has declined from 14 percent to 13 percent in the same period, according to the World Bank. The percentage of people aged 15 to 64 has gone down to 66 percent in 2010, compared to 69 percent two decades ago, in part explaining the labor shortage the country faces in some sectors. Eurostat predicts there will be less than two people of working age for every retired person in Germany by 2040.
While the European economic power maintains a healthy economy for now, having among the worst demographic stats in the world could lead to rising public spending and debt in years to come. Germany has nearly 2.3 million more women aged 65 and over compared to men. Despite women living longer, they also typically have smaller pension savings than men at retirement. On the whole, nearly 60 percent of Germans between the ages of 55 and 64 work, compared to just 40.7 percent of Greeks, according to EU statistics.
Japan. Photo: Ryouchin | Getty Images
2. Japan
Old/young ratio: 1.74:1
65 years & over: 22.9%
0-14 years: 13.1%
Japan is the largest economy to make the list of the world's oldest populations. It is also the only country outside of Europe in the rankings.
With the highest life expectancy in the world at 86, people aged 60 and over will account for over 43 percent of Japan's population by 2040, according to the GAP Index. Currently, one in four people are over the age of 65. On the other end, its population of people aged 15 to 64 fell four percentage points in the 10-year period from 2000 to 2010, while people aged up to 14 years fell two percentage points in the same period. Last year, the country made headlines when data showed that its population grew at its slowest pace since 1920 in the five years to 2010.
Slowing population growth indicates that Japan will find it more difficult to spread its debt burden and the rising costs of an aging society, among the working population. Japan is already the most indebted industrial nation with a public debt that is double its $5 trillion economy. Lonely elderly people have also become a growing social problem in the country. In 2010, 4.6 million elderly lived alone in Japan. The number of seniors that died at home alone increased by 61 percent between 2003 and 2010, according to official figures. In August, the government introduced measures for postmen to check up on people over 65 once a month by handing them seasonal greeting cards.
Monaco. Photo: Valery Hache | AFP | Getty Images
1. Monaco
Old/young ratio: 2.18:1
65 years & over: 26.9%
0-14 years: 2.18%
Monaco, one of the world's most densely populated countries, is home to the oldest population. It leads eight other European countries in the top 10 list. But the country is also a bit of a statistical anomaly because its status as a tax haven makes it a big draw for the wealthy and the retired rich.
With an estimated population of 30,539, the country saw its population decline in 2011 by 0.12 percent, according the to CIA Factbook. Only around 8,000 people are citizens of the city-state. The proportion of Monaco's population aged 65 and over is 26.9 percent, the highest in Western Europe, where the average is 16.5 percent, according to a 2011 study by research firm Euromonitor.
The median age of Monaco's population is 49.4 years, according to the CIA Factbook. With its older demographic, Monaco spent just 1.2 percent of its GDP in 2009 on education, according to the World Bank. In an effort to attract young professionals and entrepreneurs to boost its economy, Prince Albert launched a new consular
service to attract British citizens into the country in 2007.
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http://sg.finance.yahoo.com/news/countries-aging-populations-070947847.html
This demographic change has major implications for the global economy. Some of the world's biggest economies are facing rising health-care costs, a shrinking workforce, higher pension costs and diminishing fertility rates. Many countries have already begun adapting to their increasingly aging populations by raising the retirement age, reducing pension benefits and spending more on elderly care.
We've come up with a list of countries with the starkest gap between the number of old and the number of young. We calculated the number of people aged 65 and older for every person 14 years and younger. We've also provided statistics on the percentage of the total population aged 65 and above as well as the percentage aged 14 years and below.
The population numbers are from the CIA World Factbook, while we used organizations such as the World Bank, United Nations (UN), and International Monetary Fund (IMF) to illustrate demographic trends.
So, which countries have the biggest gap between old and young? Click ahead to find out
10. Latvia
Old/young ratio: 1.251:1
65 years & over: 16.9%
0-14 years: 13.5%
With one of the world's oldest populations, Latvia is expected to lose more than a tenth of its of 2.3 million people between 2000 and 2025 , according to the World Bank.
The Baltic state is also the only country on our top 10 list that has more than double the number of elderly women (252,000) than men (122,000). In fact, women live 10 years longer than men in Latvia, which is among the highest gaps in life expectancy between genders in the European Union, according to the United Nations. On the whole, the country has seen its population decline at a rate of 0.5 percent annually from 2006 to 2010, while the percentage of people aged 65 and over has steadily increased.
Not only is Latvia facing a rapidly aging population, the country's ability to support the old took a big hit during the 2009 financial crisis, when its economy suffered the deepest recession in the EU, nosediving 18 percent.
The government had to drastically cut its budget for a $10.2 billion bailout loan from the International Monetary Fund (IMF) and EU . The austerity measures, which sparked a strong reaction from protesters (pictured), included a 10 percent cut in old-age pensions, and a massive 70 percent reduction in pensions for those still working. Pensioners account for 25 percent of Latvia's population, while the labour force makes up only 43 percent, according to former Finance Ministry State Secretary Martins Bicevskis.
Photo: Christian Kober | Getty Images
9. Slovenia
Old/young ratio: 1.253:1
65 years & over: 16.8%
0-14 years: 13.4%
The retirement age in Slovenia is currently among the lowest in the EU, at 57 for women and 58 for men.
Part of the former Yugoslav republic, which was once considered a successful model for post-communist transition, is now facing a series of credit rating downgrades as its economy struggles with a high budget deficit, political instability and an expensive state pension system. Government reform to raise Slovenia's retirement age was rejected in a referendum in June of last year, dealing a major blow to the country's plans to control its ballooning public debt. The World Bank predicts the average age for Slovenia will be 47.4 years in 2025 — among the oldest in the world.
The rapidly aging population has been a big burden on Slovenia's budget. From 2003 to 2009, the average annual increase in health expenditure was 7.1 percent, while GDP growth in the same period was 5.9 percent , according to the government figures. In 2009 alone, the nominal health expenditure grew by 7.1 percent, while Slovenia's GDP contracted 5.3 percent. Despite the increase in health-care spending, Slovenia is still below the average for OECD countries. Total health spending accounted for 9.3 percent of its GDP, compared to average of 9.5 percent in OECD countries in 2009.
Sweden. Photo: Jonathan Nackstrand | AFP | Getty Images
8. Sweden
Old/young ratio: 1.27:1
65 years & over: 19.7%
0-14 years: 15.4%
Sweden is the only country in Scandinavia, a region heralded for its quality of life, to make the top 10 list of the world's oldest populations.
The country's elderly population has steadily increased from 17 percent of the total population in 2006 to 18 percent in 2010, while its population of people aged up to 14 years has remained at 17 percent since 2005, according to the World Bank. Seniors will account for nearly 30 percent of the Swedish population by 2040, according the Global Aging Preparedness (GAP) Index. But, despite its aging population, a recent study by asset management firm Allianz Global Investors showed that Sweden has the second-most sustainable pension system out of 44 major economies, thanks to a highly developed and privately funded system which lessens the burden on public finances. Swedes contribute 18.5 percent of their income to the national pension system.
In December, the government pledged $617 million over the next few years to improve elderly care after a series of highly publicized senior care scandals in recent months. An IMF study from June 2011 has ranked Sweden as the 7th country out of the world's 20 major economies to have the best living standard for the elderly.
Austria. Photo: Westend61 | Getty Images
7. Austria
Old/young ratio: 1.3:1
65 years & over: 18.2%
0-14 years: 14%
Austria's population has the fifth-highest percentage of people aged 65 and over in the world, tied with European counterparts Sweden, Portugal, Latvia and Bulgaria, according to the World Bank.
The country's 65 and over population has gone up from 16 percent of the total population in 2006 to 18 percent in 2010, while its population of people aged 14 and under has declined from 16 percent to 15 percent in the same period. Public pension spending was 12.3 percent of Austria's GDP in 2008, over 5 percent higher than in the average of OECD countries. Austria also has only 3.5 people of working age for every person aged 65 and over, which is below the OECD average of 4.2 workers.
Men in Austria can currently retire as early as 62, while women can retire at 57. There are nearly 245,000 more women aged 65 and over in the country than men, according to the CIA Factbook. The OECD warned Austria last year that the country needs to cut government debt by curbing early retirement and eliminating early pensions. Last week, the country lost its top-notch credit rating, when it was downgraded by Standard & Poor's to AA+.
Bulgaria. Photo: Dimitar Dilkoff | AFP | Getty Images
6. Bulgaria
Old/ young ratio: 1.31:1
65 years & over: 18.2%
0-14 years: 13.9%
Bulgaria is one of three Eastern European countries to make the list of the world's 10 oldest populations. It is also one of only 16 countries in the world that saw their populations decline by more than 5,000 people between 2000 and 2005, according to the World Bank.
Bulgaria's elderly population increased from 17 percent in 2006 to 18 percent in 2010, while its young population aged up to 14 years has remained steady at 14 percent of the total population since 2003, according to the World Bank. By 2025, more than one in five Bulgarians will be older than 65, up from just 13 percent in 1990.
With its rapidly aging population, the Bulgarian government raised the official retirement age by four months starting this year for every year until it reaches 63 for women and 65 for men, up from 60 and 63 respectively. The government backtracked from plans to raise the retirement age by one year in 2012 after thousands of workers stormed through the capital in protest . For its 2.5 million workers, Bulgaria has 2.2 million retired people. It is also the poorest member of the EU, with the lowest GDP per capita, according to Eurostat.
Greece. Photo: Louisa Gouliamaki | AFP | Getty Images
5. Greece
Old/young ratio: 1.38:1
65 years & over: 19.6%
0-14 years: 14.2%
Greece has the world's weakest pension system, crippled by high levels of sovereign debt, low retirement ages and a high ratio of pensioners to workers, according a recent study by Allianz Global Investors.
The country's population of people aged 65 and over has increased from 18 percent in 2006 to 19 percent in 2010, while the group of people aged between 15 and 64 has remained at 67 percent since 2004, according to the World Bank. With nearly one-quarter of Greece's 11 million people retired, pension payments are a major burden on the economy, which is being kept afloat by the EU and IMF bailout funds.
The country made headlines last year for welfare fraud when the government revealed that thousands of dead Greeks were still receiving pensions . Data in June showed that 4,500 deceased civil servants continued to receive pension payments, costing the taxpayer $20.5 million a year. Pressured by international lenders, the country has been forced to make sweeping reforms of its pension system. Now, fewer than 10 percent of Greeks can retire before 65. In 2010, some Greeks could retire as early as 40 years of age on a reduced pension.
Italy. Photo: Giorgio Cosulich | Getty Images
4. Italy
Old/young ratio: 1.47:1
65 years & over: 20.3%
0-14 years: 13.8%
People over the age of 60 will make up a whopping 40 percent of Italy's population by 2040 compared to over 25 percent in 2007, according the GAP Index.
The country has seen its elderly population remain at 20 percent from 2005 to 2010, while the younger population of people aged 0 to 14 years hasn't grown since 1999, remaining at 14 percent. Italy's public spending on pensions is the highest in the EU, at over 16 percent of GDP compared to an average of 11 percent for the bloc.
Once considered one of the most generous pension systems in Europe, Italy's government took a hatchet to the current scheme by announcing a series of austerity measures to reform the welfare system in December . The country has one of the lowest employment rates in the region, in part because people retire long before the European average. Only 37.4 percent of Italians aged 55 to 64 still work, compared to an EU average of 47.5 percent. The new measures would see the minimum pension age for both men and women raised in stages to 66 by 2018 with incentives to keep workers employed until 70.
Germany. Photo: Thomas Grass | Getty Images
3. Germany
Old/young ratio: 1.54:1
65 years & over: 20.6%
0-14 years: 13.3%
Germany is the most populous European country and the second-biggest economy to make the list of the world's oldest populations.
The country has seen its 65 and over population increase from 19 percent in 2006 to 20 percent in 2010, while the young generation aged 0 to 14 has declined from 14 percent to 13 percent in the same period, according to the World Bank. The percentage of people aged 15 to 64 has gone down to 66 percent in 2010, compared to 69 percent two decades ago, in part explaining the labor shortage the country faces in some sectors. Eurostat predicts there will be less than two people of working age for every retired person in Germany by 2040.
While the European economic power maintains a healthy economy for now, having among the worst demographic stats in the world could lead to rising public spending and debt in years to come. Germany has nearly 2.3 million more women aged 65 and over compared to men. Despite women living longer, they also typically have smaller pension savings than men at retirement. On the whole, nearly 60 percent of Germans between the ages of 55 and 64 work, compared to just 40.7 percent of Greeks, according to EU statistics.
Japan. Photo: Ryouchin | Getty Images
2. Japan
Old/young ratio: 1.74:1
65 years & over: 22.9%
0-14 years: 13.1%
Japan is the largest economy to make the list of the world's oldest populations. It is also the only country outside of Europe in the rankings.
With the highest life expectancy in the world at 86, people aged 60 and over will account for over 43 percent of Japan's population by 2040, according to the GAP Index. Currently, one in four people are over the age of 65. On the other end, its population of people aged 15 to 64 fell four percentage points in the 10-year period from 2000 to 2010, while people aged up to 14 years fell two percentage points in the same period. Last year, the country made headlines when data showed that its population grew at its slowest pace since 1920 in the five years to 2010.
Slowing population growth indicates that Japan will find it more difficult to spread its debt burden and the rising costs of an aging society, among the working population. Japan is already the most indebted industrial nation with a public debt that is double its $5 trillion economy. Lonely elderly people have also become a growing social problem in the country. In 2010, 4.6 million elderly lived alone in Japan. The number of seniors that died at home alone increased by 61 percent between 2003 and 2010, according to official figures. In August, the government introduced measures for postmen to check up on people over 65 once a month by handing them seasonal greeting cards.
Monaco. Photo: Valery Hache | AFP | Getty Images
1. Monaco
Old/young ratio: 2.18:1
65 years & over: 26.9%
0-14 years: 2.18%
Monaco, one of the world's most densely populated countries, is home to the oldest population. It leads eight other European countries in the top 10 list. But the country is also a bit of a statistical anomaly because its status as a tax haven makes it a big draw for the wealthy and the retired rich.
With an estimated population of 30,539, the country saw its population decline in 2011 by 0.12 percent, according the to CIA Factbook. Only around 8,000 people are citizens of the city-state. The proportion of Monaco's population aged 65 and over is 26.9 percent, the highest in Western Europe, where the average is 16.5 percent, according to a 2011 study by research firm Euromonitor.
The median age of Monaco's population is 49.4 years, according to the CIA Factbook. With its older demographic, Monaco spent just 1.2 percent of its GDP in 2009 on education, according to the World Bank. In an effort to attract young professionals and entrepreneurs to boost its economy, Prince Albert launched a new consular
10. Latvia
Old/young ratio: 1.251:1
65 years & over: 16.9%
0-14 years: 13.5%
With one of the world's oldest populations, Latvia is expected to lose more than a tenth of its of 2.3 million people between 2000 and 2025 , according to the World Bank.
The Baltic state is also the only country on our top 10 list that has more than double the number of elderly women (252,000) than men (122,000). In fact, women live 10 years longer than men in Latvia, which is among the highest gaps in life expectancy between genders in the European Union, according to the United Nations. On the whole, the country has seen its population decline at a rate of 0.5 percent annually from 2006 to 2010, while the percentage of people aged 65 and over has steadily increased.
Not only is Latvia facing a rapidly aging population, the country's ability to support the old took a big hit during the 2009 financial crisis, when its economy suffered the deepest recession in the EU, nosediving 18 percent.
The government had to drastically cut its budget for a $10.2 billion bailout loan from the International Monetary Fund (IMF) and EU . The austerity measures, which sparked a strong reaction from protesters (pictured), included a 10 percent cut in old-age pensions, and a massive 70 percent reduction in pensions for those still working. Pensioners account for 25 percent of Latvia's population, while the labour force makes up only 43 percent, according to former Finance Ministry State Secretary Martins Bicevskis.
Photo: Christian Kober | Getty Images
9. Slovenia
Old/young ratio: 1.253:1
65 years & over: 16.8%
0-14 years: 13.4%
The retirement age in Slovenia is currently among the lowest in the EU, at 57 for women and 58 for men.
Part of the former Yugoslav republic, which was once considered a successful model for post-communist transition, is now facing a series of credit rating downgrades as its economy struggles with a high budget deficit, political instability and an expensive state pension system. Government reform to raise Slovenia's retirement age was rejected in a referendum in June of last year, dealing a major blow to the country's plans to control its ballooning public debt. The World Bank predicts the average age for Slovenia will be 47.4 years in 2025 — among the oldest in the world.
The rapidly aging population has been a big burden on Slovenia's budget. From 2003 to 2009, the average annual increase in health expenditure was 7.1 percent, while GDP growth in the same period was 5.9 percent , according to the government figures. In 2009 alone, the nominal health expenditure grew by 7.1 percent, while Slovenia's GDP contracted 5.3 percent. Despite the increase in health-care spending, Slovenia is still below the average for OECD countries. Total health spending accounted for 9.3 percent of its GDP, compared to average of 9.5 percent in OECD countries in 2009.
Sweden. Photo: Jonathan Nackstrand | AFP | Getty Images
8. Sweden
Old/young ratio: 1.27:1
65 years & over: 19.7%
0-14 years: 15.4%
Sweden is the only country in Scandinavia, a region heralded for its quality of life, to make the top 10 list of the world's oldest populations.
The country's elderly population has steadily increased from 17 percent of the total population in 2006 to 18 percent in 2010, while its population of people aged up to 14 years has remained at 17 percent since 2005, according to the World Bank. Seniors will account for nearly 30 percent of the Swedish population by 2040, according the Global Aging Preparedness (GAP) Index. But, despite its aging population, a recent study by asset management firm Allianz Global Investors showed that Sweden has the second-most sustainable pension system out of 44 major economies, thanks to a highly developed and privately funded system which lessens the burden on public finances. Swedes contribute 18.5 percent of their income to the national pension system.
In December, the government pledged $617 million over the next few years to improve elderly care after a series of highly publicized senior care scandals in recent months. An IMF study from June 2011 has ranked Sweden as the 7th country out of the world's 20 major economies to have the best living standard for the elderly.
Austria. Photo: Westend61 | Getty Images
7. Austria
Old/young ratio: 1.3:1
65 years & over: 18.2%
0-14 years: 14%
Austria's population has the fifth-highest percentage of people aged 65 and over in the world, tied with European counterparts Sweden, Portugal, Latvia and Bulgaria, according to the World Bank.
The country's 65 and over population has gone up from 16 percent of the total population in 2006 to 18 percent in 2010, while its population of people aged 14 and under has declined from 16 percent to 15 percent in the same period. Public pension spending was 12.3 percent of Austria's GDP in 2008, over 5 percent higher than in the average of OECD countries. Austria also has only 3.5 people of working age for every person aged 65 and over, which is below the OECD average of 4.2 workers.
Men in Austria can currently retire as early as 62, while women can retire at 57. There are nearly 245,000 more women aged 65 and over in the country than men, according to the CIA Factbook. The OECD warned Austria last year that the country needs to cut government debt by curbing early retirement and eliminating early pensions. Last week, the country lost its top-notch credit rating, when it was downgraded by Standard & Poor's to AA+.
Bulgaria. Photo: Dimitar Dilkoff | AFP | Getty Images
6. Bulgaria
Old/ young ratio: 1.31:1
65 years & over: 18.2%
0-14 years: 13.9%
Bulgaria is one of three Eastern European countries to make the list of the world's 10 oldest populations. It is also one of only 16 countries in the world that saw their populations decline by more than 5,000 people between 2000 and 2005, according to the World Bank.
Bulgaria's elderly population increased from 17 percent in 2006 to 18 percent in 2010, while its young population aged up to 14 years has remained steady at 14 percent of the total population since 2003, according to the World Bank. By 2025, more than one in five Bulgarians will be older than 65, up from just 13 percent in 1990.
With its rapidly aging population, the Bulgarian government raised the official retirement age by four months starting this year for every year until it reaches 63 for women and 65 for men, up from 60 and 63 respectively. The government backtracked from plans to raise the retirement age by one year in 2012 after thousands of workers stormed through the capital in protest . For its 2.5 million workers, Bulgaria has 2.2 million retired people. It is also the poorest member of the EU, with the lowest GDP per capita, according to Eurostat.
Greece. Photo: Louisa Gouliamaki | AFP | Getty Images
5. Greece
Old/young ratio: 1.38:1
65 years & over: 19.6%
0-14 years: 14.2%
Greece has the world's weakest pension system, crippled by high levels of sovereign debt, low retirement ages and a high ratio of pensioners to workers, according a recent study by Allianz Global Investors.
The country's population of people aged 65 and over has increased from 18 percent in 2006 to 19 percent in 2010, while the group of people aged between 15 and 64 has remained at 67 percent since 2004, according to the World Bank. With nearly one-quarter of Greece's 11 million people retired, pension payments are a major burden on the economy, which is being kept afloat by the EU and IMF bailout funds.
The country made headlines last year for welfare fraud when the government revealed that thousands of dead Greeks were still receiving pensions . Data in June showed that 4,500 deceased civil servants continued to receive pension payments, costing the taxpayer $20.5 million a year. Pressured by international lenders, the country has been forced to make sweeping reforms of its pension system. Now, fewer than 10 percent of Greeks can retire before 65. In 2010, some Greeks could retire as early as 40 years of age on a reduced pension.
Italy. Photo: Giorgio Cosulich | Getty Images
4. Italy
Old/young ratio: 1.47:1
65 years & over: 20.3%
0-14 years: 13.8%
People over the age of 60 will make up a whopping 40 percent of Italy's population by 2040 compared to over 25 percent in 2007, according the GAP Index.
The country has seen its elderly population remain at 20 percent from 2005 to 2010, while the younger population of people aged 0 to 14 years hasn't grown since 1999, remaining at 14 percent. Italy's public spending on pensions is the highest in the EU, at over 16 percent of GDP compared to an average of 11 percent for the bloc.
Once considered one of the most generous pension systems in Europe, Italy's government took a hatchet to the current scheme by announcing a series of austerity measures to reform the welfare system in December . The country has one of the lowest employment rates in the region, in part because people retire long before the European average. Only 37.4 percent of Italians aged 55 to 64 still work, compared to an EU average of 47.5 percent. The new measures would see the minimum pension age for both men and women raised in stages to 66 by 2018 with incentives to keep workers employed until 70.
Germany. Photo: Thomas Grass | Getty Images
3. Germany
Old/young ratio: 1.54:1
65 years & over: 20.6%
0-14 years: 13.3%
Germany is the most populous European country and the second-biggest economy to make the list of the world's oldest populations.
The country has seen its 65 and over population increase from 19 percent in 2006 to 20 percent in 2010, while the young generation aged 0 to 14 has declined from 14 percent to 13 percent in the same period, according to the World Bank. The percentage of people aged 15 to 64 has gone down to 66 percent in 2010, compared to 69 percent two decades ago, in part explaining the labor shortage the country faces in some sectors. Eurostat predicts there will be less than two people of working age for every retired person in Germany by 2040.
While the European economic power maintains a healthy economy for now, having among the worst demographic stats in the world could lead to rising public spending and debt in years to come. Germany has nearly 2.3 million more women aged 65 and over compared to men. Despite women living longer, they also typically have smaller pension savings than men at retirement. On the whole, nearly 60 percent of Germans between the ages of 55 and 64 work, compared to just 40.7 percent of Greeks, according to EU statistics.
Japan. Photo: Ryouchin | Getty Images
2. Japan
Old/young ratio: 1.74:1
65 years & over: 22.9%
0-14 years: 13.1%
Japan is the largest economy to make the list of the world's oldest populations. It is also the only country outside of Europe in the rankings.
With the highest life expectancy in the world at 86, people aged 60 and over will account for over 43 percent of Japan's population by 2040, according to the GAP Index. Currently, one in four people are over the age of 65. On the other end, its population of people aged 15 to 64 fell four percentage points in the 10-year period from 2000 to 2010, while people aged up to 14 years fell two percentage points in the same period. Last year, the country made headlines when data showed that its population grew at its slowest pace since 1920 in the five years to 2010.
Slowing population growth indicates that Japan will find it more difficult to spread its debt burden and the rising costs of an aging society, among the working population. Japan is already the most indebted industrial nation with a public debt that is double its $5 trillion economy. Lonely elderly people have also become a growing social problem in the country. In 2010, 4.6 million elderly lived alone in Japan. The number of seniors that died at home alone increased by 61 percent between 2003 and 2010, according to official figures. In August, the government introduced measures for postmen to check up on people over 65 once a month by handing them seasonal greeting cards.
Monaco. Photo: Valery Hache | AFP | Getty Images
1. Monaco
Old/young ratio: 2.18:1
65 years & over: 26.9%
0-14 years: 2.18%
Monaco, one of the world's most densely populated countries, is home to the oldest population. It leads eight other European countries in the top 10 list. But the country is also a bit of a statistical anomaly because its status as a tax haven makes it a big draw for the wealthy and the retired rich.
With an estimated population of 30,539, the country saw its population decline in 2011 by 0.12 percent, according the to CIA Factbook. Only around 8,000 people are citizens of the city-state. The proportion of Monaco's population aged 65 and over is 26.9 percent, the highest in Western Europe, where the average is 16.5 percent, according to a 2011 study by research firm Euromonitor.
The median age of Monaco's population is 49.4 years, according to the CIA Factbook. With its older demographic, Monaco spent just 1.2 percent of its GDP in 2009 on education, according to the World Bank. In an effort to attract young professionals and entrepreneurs to boost its economy, Prince Albert launched a new consular
service to attract British citizens into the country in 2007.
http://www.cnbc.com/id/46010334?slide=2
http://sg.finance.yahoo.com/news/countries-aging-populations-070947847.html
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