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Population Ageing and the Need for Social Protection in Asia and the Pacific Vanessa Steinmayer, PhD Population Affairs Officer, Social Development Division

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Population Ageing and the Need for Social Protection in Asia and the Pacific

Vanessa Steinmayer, PhDPopulation Affairs Officer, Social Development Division

The region is ageing rapidly, but pensions coverage is still low

0 20 40 60 80 100Japan

KazakhstanAustralia

FijiChina

Korea, Republic ofHong Kong , China

MongoliaRussian Federation

SingaporeSolomon Islands

KyrgyzstanThailandMalaysia

TurkeyArmenia

SamoaGeorgia

AzerbaijanPhilippines

Viet NamTajikistanMaldives

Sri LankaIran, Islamic Republic of

VanuatuBhutan

IndiaIndonesia

TongaPakistan

Papua New GuineaNepal

AfghanistanLao PDR

BangladeshCambodia

Timor-Leste

Percentage of the working-age population

0

10

20

30

40

50

60

70

80

Perc

enta

ge o

f the

wor

king

-age

pop

ulat

ion

Male Female

Pensions coverage as a percentage of the working-age population

Source: ILO, Social Protection Report 2017-2019

People still live between 19 and 30 years after retirement

60 60

55

6265 55 63 60

57

5555

55

62 6555

63 6057

0

5

10

15

20

25

30

Viet Nam China IslamicRepublicof Iran

Singapore Japan Fiji Thailand Sri Lanka Indonesia

Year

s

Male Female

Retirement ageLife expectancy at the respective retirement age

Source: ESCAP calculations with data from United Nations Department of Economic and Social Affairs: World Population Prospects, the 2017 Revision

Pension benefits often inadequateAdequacy of benefits of contributory pensions

Perc

enta

ge

Source: World Bank, ASPIRE: The Atlas of Social Protection Indicators of Resilience and Equity, online database, accessed 20 February 2019

Social protection coverage for the informal sector is limited

Pension systems tend to perpetuate existing inequalities• Work-based: only those who participated in the formal

labour force are included• No redistribution: Most pension systems in the region

are “defined contribution” – you get what you pay• Not gender responsive: Only few countries have

“child credits” for women – women are structurally disadvantaged in contributory pension systems

• Social pensions important but do not address inequalities: Benefit levels of social pensions are often very low

Work of people aged 60 or over• Many older persons still work• More men than women• Employment decreases with age

01020304050607080

Male Female

Proportion of older persons (60+) who are employed, by sex, latest available

year

Source: HelpAge from LFS 2013 (Bangladesh), LFS 2008 (Nepal), LFS 2012 (Philippines, LFS 2013 (Thailand, LFS 2014 (Viet Nam)

Employment of older persons by age group

Health reasons is the main cause of stopping work

Source: HelpAge

Thailand: support from children and work income most important income sources of older persons

Support from

children, 36.7

Work income,

33.9

Social pension,

14.8

Contributory pension, 4.9

Transfers from

spouse, 4.3

Savings and

assets, 3.9

Other, 1.5

0

5

10

15

20

25

30

35

40

60-64 65-69 70-79 80+

Per c

ent

Age group

Income sources of older persons in Thailand

Source: Jinanggoon Rojananan, Presentation made at the Annual Help Age Conference 2019; Department of Older Persons, Ministry of Social Development and Human Security

Percentage of older persons with savings by age group, 2011

Social protection for older men and women is crucial to achieve the SDGsSDG 1: No povertyTarget 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitionsTarget 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerableSDG 5: Gender equalitySDG 10: Reduce inequalityTarget 10.4. Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality

Conclusion• Social protection for older persons will be

crucial to achieve the SDGs• The way “ageing” is measured and defined

can decide over income or no income• Mandatory retirement age is too low in

some countries: retirement time = working time

• Social pensions eligibility by age – easy to identify but does it reflect the “need”?

• Existing social protection tools for older women fail to address disadvantages accumulated throughout the life-cycle

THANK [email protected]

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