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The Elderly in Australian Society - Literature review Example

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This literature review "The Elderly in Australian Society" presents aging that involves a combination of psychological, social, and biological processes that affect persons as they grow older. During the process, individuals accomplish and experience social and biological maturity…
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The Elderly in Australian Society Name Institution Date The Elderly in Australian Society Introduction Ageing involves a combination of psychological, social and biological processes that affect persons as they grow older. During the process, individuals accomplish and experience social and biological maturity. It is biological in that a person experiences varied developments biologically. It is also social because of its ability to affect the social well-being of the people. According to Bloom et al (2011), the population of the world is growing older at a high rate. As a result therefore, the number of the elderly will be high. The life expectancies will hence be longer and health (Bloom et al 2011). The numbers of the working-age people will be relatively fewer. The effects brought by the population ageing cannot be straightforwardly predicted however. The population ageing raises new challenges that are fundamental and formidable (Bloom et al 2011). The paper discusses aging in Australia indicating the socio-economic effects brought by ageing. It also indicates the positives of ageing. The economic effects The ageing population necessarily causes an increase in the Aged Dependency Ratio (ADR). The number of the people retiring per those of working age is also increasing (Apps, et al., 2007). Most retirees are expected to continue receiving aged pension at a significant level even as Superannuation Guarantee (SG) matures (Chomik & Piggot, 2008). The health care cost in Australia has been seen to increase greatly as a result of the ageing population. The health care cost increase was caused by the fact that the aged have a demand for health services that is above average (Apps, et al., 2007). This has been seen to cause a lot of strain financially on the capability of the generation that is working to finance health services and pensions for the aged (Apps, et al., 2007, Chomik & Piggot, 2008) Apps et al. (2007), states that according to the Australian Government Integrated Reports (IGR) (2002-2003, 2007), there is a rising burden of the working-age generation of the future. This is as a result of the ADR rise projected over the coming four decades. According to IGR2, by 2007, there were five persons of working age supporting each aged sixty-five plus. It is however predicted that by 2047, 2.4 will be the approximate number of working person able to support those of 65 years plus of age (Apps, et al., 2007). Bloom et al., (2011) argue that population ageing has brought about severe consequences including a massive fertility decline. The economic prosperity very fundamentally and relies on the quality and size of the workforce (Bloom et al., 2011). When a person has passed fifty years and above, his likelihood to participate in the labor force starts to depreciate. Assets stoke decreases because the elderly depend on their savings in financing their spending (Bloom et al., 2011). The possible labor market combination dissaving and tightening raises concerns that the countries that are steeply aging will face a slower economic growth. Australia, therefore, risks facing the shrinkage of its economy. It is entirely true that the rate of participation in the global labor force has constantly been dropping and will have significantly dropped further by 2050 (Bloom et al., 2011). Part of the decline can be attributed, to a greater extent, to an ageing population. According to the report of the Productivity Commission in 2005, the average income per capita in 2045 in Australia will be approximately eighty-five percent bigger, hence notwithstanding ageing (Bloom et al., 2011). Attention has been given in recent decades, to the potential aging population effect on the prices of assets. There are concerns that the prices of the assets are going to fall as those who are elderly will sell off the assets they owned (Guest, 2008). This will, therefore, lead to an asset meltdown. Analysts have predicted meltdowns of assets in housing markets because of the decrease in demand of the people who were elderly (Guest, 2008, Bloom et al., 2011). Social Effects The population ageing is seen to be a social concern in the Australian society (Chomik & Piggot, 2008). It signals the advent of a challenge that is tremendous; the non-communicable diseases tidal wave. Currently, the non-communicable diseases are causing over sixty percent of all deaths. The diseases have as well led to almost half of effective and actual life years because of disability and death (Chomik & Piggot, 2008). In every world region, the diseases range from a dominant to a significant disability and death cause in both low and high-income nations. According to Guest (2008), the social security programs such as the pay-as-you-go that is a publicly funded pension scheme face challenges that are very severe. The number of beneficiaries will automatically rise yet the number of the contributors will significantly drop (Apps, et al. 2007). This will cause strain in the government social welfare programs. Population aging also risk lowering the rates of fertility to levels that may threaten the population’s existence if sustained. Apps et al. (2007), states that the total fertility rate of Australia in 1961 was approximately 3.5, however by 1980, it had fallen to 1.9. It has tended to stay at around 1.7 since then. Population aging potentially jeopardizes the international influence of Australia as well as its pride as a nation that is brought about by the population size that is relatively small (Guest, 2008). The nation as well faces a potential intergenerational conflict. This will be caused by the fact that a larger older population is being supported by a smaller younger population (Guest, 2008). Ageing populations in Australia have a direct impact on their families (Chomik & Piggot, 2008). Every ageing person is to some extent attached to a particular family. The younger people in the family, therefore, get worried trying to give the aged a perfect life (Chomik & Piggot, 2008). The family, therefore, gets strained financially and socially because the family structure is robustly affected. The aged behave like children therefore attending to them require attention and a lot of time (Guest, 2008). Australia is among the countries that face and experience the fall in fertility in the increasing life expectancy context. This thus results into a population that is ageing (Guest, 2008). There are other important changes including the shifts in the ratio of sex. There is also an observed transition from a nation that is virtually mono-cultural to one that is diverse culturally in the world. The trends have essential implications for a family. (Weston, 2001) The Positive Perspective As much as the elderly are most likely to be disabled than the young ones, most of them in their early seventies and late sixties appear healthy (Weston, 2001). They tend to lead lives that are very productive. They are seen to provide more practical and financial support to their families (Weston, 2001). Those in sixties and fifties tend to be more likely than the young to be offering practical or financial support to both adult children and elderly parents. The children, in this case, receive more support (Weston, 2001). According to Bloom et al. (2011), in economies that knowledge rules, the older workers’ experience grows in value, and they can as well serve as the younger workers role models. The elderly people are associated with wisdom and experience (Weston, 2001). Most companies and firms prefer retaining elderly persons in their work to provide the experience. The elderly offer training to the young giving them orientation of the system of work. There are other fields like medicine where experience may be very vital, and hence the elderly tend to be retained in the work force (Weston, 2001). The employer surveys indicate often that workers aged fifty years and above are seen as more reliable, loyal, knowledgeable and experienced than the employees who are younger (Weston, 2001). Practices should therefore the same perception. This has, however, happened to some extent in firms that are smaller-sized (Bloom et al., 2011). Most elderly persons who are still strong but retired from work embark on caring roles. The system of income provision for retirement in Australia is made up of three pillars of means-tested aged pension. There is also a mandatory superannuation of occupation and voluntary savings that are long term (Bloom et al, 2011). Conclusion In conclusion, ageing has affected Australia and other developed countries. The key challenge to the government of Australia is that it offers social security services to the old yet the support does not match the number of people in the work force. The government, therefore, has challenges of seeing that there is a balance between the working age and the aged. Ageing is inevitable. However, there should be a balance in the ferity rate of a nation so as to sustain its work force. The population ageing takes place in each country worldwide. The factors underlying the global population ageing are declining fertility, increased longevity and the ageing of the generations of baby boom (Bloom et al, 2011). In Australia, therefore, the families’ ability of playing a pivotal role of making sure that Australia meets the challenges brought about by the ageing population requires a lot. It requires partnerships between business, government, families and various community levels (Weston, 2001). References Apps, P. et al., (2007). Population Ageing, Taxation, Pensions and Health Costs. Australian Journal of Labor Economics Vol. 10, No. 2, June 2007, pp 79-97. Bloom, D., E. et al., (2011). Program on the Global Demography of Aging- Population Aging: Facts, Challenges and Responses. PGDA Working Paper No. 71 Guest, R., 2008. n Ageing With Application To Australia. Journal of Population. Research Vol. Evaluating Public Policy Responses To The Economic Burden Of Populatio25, No. 2, 2008 Weston, R., et al., (2001). The changing shape of Australia’s population. Australian Institute of Family Studies Chomik, R. & Piggot, J., (2008). Pensions, Ageing and Retirement in Australia: Long-Term Projections and Policies. T h e Australia n Economic Review, vol. 45, no .3, pp. 35 0–61 Read More
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