The aging population in the Netherlands is a major issue in healthcare. It seems like a dead end. More and more elderly people need care and can no longer work. What consequences does this have? Will the AOW become unaffordable? Is the labor market growing unevenly? Or are there also positive consequences of an aging population? An aging population is inevitable, but in this article I would like to look at the opportunities associated with an aging population. Since we can’t do anything to stop the aging population, isn’t it best to see this as a challenge? An opportunity for entrepreneurs? Is this really a dead end or is there progress in the aging population?
1. Baby boomers
After the Second World War it was the time to start a family. Many children were born at that time, the so-called baby boom took place between the 1940s and 1970s. When the contraceptive pill came onto the market in the 1960s, the number of children decreased again. The children from this time, the baby boomers, are now retiring, the first baby boomers are now 68. This means that there are now relatively many (non-working) elderly people. On top of that, there is the fact that people are getting older due to better health care. (CBS, 2012)
1.1. Future The aging of the population clearly started in 2010, when the first baby boomers turned 65 and retired. The aging population is expected to reach its peak in 2040, when the gray pressure (= ratio 20-65 to 65+) will be 51%. In 2012 the gray pressure was 27%, so this will be doubled. (Giesbers, Verweij, & Beer, 2013)
2. Consequences
Aging has many consequences in various areas. Often negative, but in this chapter I also want to look at the positive points in those areas, the opportunities that can be gained from them. After all, aging cannot be stopped, so making the best of it and getting the most out of it seems the best thing to do.
2.1. Financial
Although the retirement age is increasing and working after the age of 65 is encouraged, the majority of older people are retired. (Arts & Otten, 2013) These elderly people receive a pension. This means that fewer workers have to pay for the care and pensions of a growing number of elderly people. (CBS, 2012) The retirement age will probably have to rise even more to be able to pay for it all. The personal contribution of the elderly will also increase in the future.
Pros+
Many entrepreneurs are retiring at this time and they often sell their business if a takeover within the family is not possible. This is an ideal opportunity, not only for starters to get off the ground, but also for existing entrepreneurs to expand their customer base. There are also many things that many elderly people spend money on, things such as outings (concerts, museums) and books. In the future there will probably also be a need for new technology for the elderly. (Singer, 2011) This means an increase in employment. The opportunity to invest is now. For example, the demand for more care, technology for the elderly, cosmetics, medicines, etc. will continue to rise over the next 40 years and will continue for at least another 20 years after that.
2.2. In care
More elderly people means more people needing care. Unfortunately, there is not always money for this, which means that fewer employees will have to care for more clients. This results in high workload and reduces the quality of care.
Plus points+
This provides opportunities to invest in elderly care. This also creates employment. In the future , technology will be used more often in healthcare . Today’s over-65s have little experience with technology, but the last baby boomers, from the 1950s and 1960s, do. In the future, they may want to use more help in the form of technology, such as help with household appliances, or financial help via a computer or tablet. This not only means that older people can manage independently for longer without care, but also that more employment can be created for people in technology (Singer, 2011).
2.3. Villages are aging
More and more young people are leaving for the city, while older people remain in the villages. Young people go to study there and stay there to work. As a result, employment in the villages is also declining and even more young people are moving to the city. Many facilities are therefore changing. Schools and daycare centers are less needed in villages, so they disappear from the villages. (CBS, 2012) The aging of the population is not happening at the same pace in every province. In 2005, Zeeland was at the top with the highest share of elderly people, followed by Drenthe and Limburg. (Fokkema & Dykstra, 2007)
Plus points+
Where schools disappear, there is an opportunity for elderly facilities to establish themselves in these villages. This way they can work in a more targeted manner and assisted living can be created more easily. Housing associations can also make use of adapted homes for the elderly. Not many elderly people have the urge to move anymore, but when they do move, the choice often falls to a quiet, wooded province. Drenthe is therefore very popular with young elderly people, (55-65) this is also jokingly called Drenthenieren. Drenthe makes good use of this, these young elderly people are often not short of money and come for rest and relaxation. (Fokkema & Dykstra, 2007) Facilities such as the Drenthe museum or the orchid garden respond well to this.
3. Job opportunities for the elderly
People between 55 and 65 are less likely to become unemployed than before, but once they find themselves without a job it is difficult to find work again. Especially while these people often have a lot of experience and knowledge and are often loyal to the company. This concerns a group of more than 2.1 million people between the ages of 55 and 65, of which 1 million people are working. The majority of people (90%) who are not working no longer want or cannot do so, the remaining 10% would like to work. In 2009, this was 104 thousand people over 55 who would like to work, but are unemployed. (RWI, 2011) By encouraging this target group and helping them find a new job, fewer benefits have to be paid and the labor market is stimulated.
Volunteer work
There are also many elderly people who are willing to do volunteer work. Baby boomers are relatively healthy and often do not want to sit behind the geraniums. For example, a large number of debt relief buddies are retired. These are mainly elderly people who are financially well off and want to help others get their financial situation in order.
Retirement age
People are getting older, which is also one of the causes of the aging population. In 1950, life expectancy for men was 70.4 and for women 72.7. In 2011, life expectancy had increased to 79.2 for men and 82.9 for women. So that is on average almost 10 years older. This means that older people, when they are 65 and stop working, can enjoy their pension for a longer period of time than before. The problem is that this costs a lot of money, pensions have to be paid out for longer (Poos & Wilk, 2013). The retirement age must therefore be increased, it will be increased in steps. In 2018 this will be 66, in 2021 it will be 67. This is also why it is very important that work opportunities for the elderly are increased.
4. Aging in other parts of the world
The Netherlands is of course not the only country struggling with an aging population, on the contrary! If we look at our neighboring countries, they all experience higher gray pressure. Globally, people are getting older, and over the past sixty years the average life expectancy has risen from 46 to 68. It is expected that in the year 3000 people will live to an average age of 81 years. (Hoeks, 2012)
4.1. Aging in the EU When looking at other European countries, the Netherlands is not aging that much. All our neighboring countries have a higher percentage of elderly people. Germany and Italy in particular have a lot to do with the aging of their populations. Cyprus and Ireland the least. The Netherlands is around the average. (Harbers & Beer, 2013)
In Europe, most elderly people live as independently as possible and preference is given to home care. Elderly people receive an amount with which they can purchase care themselves, or the care is made available by the municipality. Most EU countries have a personal contribution system, except for people who cannot pay this themselves, who can receive an exemption from personal contribution. (CBZ, 2003)
4.2. Aging in Asia
In Asia, aging plays an even greater role than here in the Netherlands and in the rest of the EU. The number of people aged 65+ is expected to triple. Japan is currently number one on the list of the 50 most aging countries. The gray pressure is growing faster than in other parts of the world because China has a one-child policy. This means there is little green pressure. (Powell, 2011) In other Asian countries where there is no one-child policy, many elderly people can count on their children. Loyalty towards the elderly is great, grandparents, parents and children often live together in one house.
4.3. Aging in developing countries
Developing countries are not yet among the most aging countries, but the aging process will soon be faster than in the rest of the world. (Beets, 2008) It is expected that in 2050 approximately eighty percent of all people over the age of sixty will live in a developing country, now that figure is around sixty percent. This will mainly be because young people and young parents are moving abroad to look for work. Children are often left with grandparents, who take over the care when parents go abroad. (Hoeks, 2012)
4.4. Aging in America
Aging is also happening in America, but not as much as in other parts of the world. America is at number 45 in the list of the 50 most aging countries. There was also a baby boom in America, but not to the extent that it occurred in the Netherlands. The cause of aging in the US is largely due to a decline in the fertility rate and an increase in life expectancy. (Beets, 2008)
5. Conclusion
It is unavoidable that the Netherlands is aging. It is a fact and therefore it is best to see it as an opportunity, a challenge, to deal with it creatively. What I have noticed is that people always talk negatively about the aging population. Complete disaster scenarios emerge. Healthcare will become unaffordable, the state pension will become unaffordable, the labor market will soon be at a standstill, etc. But also look at the sale of electric bicycles, for example, the need for adapted homes, or elderly people who are willing to volunteer with their knowledge and experience. to do. These baby boomers are relatively healthy, we are not only getting older but also staying vital longer.
Adjustments that can be made in the future to minimize the negative consequences of aging include, for example, raising the retirement age and increasing the personal contribution of the elderly when possible. People not only live longer, but also have longer vitality and can work longer. Pensions and benefits will also have to be paid for less time. Investing in job opportunities for people over 55 is also important. This prevents many people from taking early retirement or becoming unemployed and receiving benefits. Furthermore, it is important to invest in this older target group, especially in healthcare, but also in new technology or adapted homes. This will be in high demand and will remain in demand for at least another 60 years.