Adding Life to Retirement Years

byThe Hon. Tam Yiu ChungChairman, Elderly Commission

15 February 2003

Topics:Background and IntroductionContribution of Older Persons to SocietyRetirement AgeSenior VolunteerismPreparation for RetirementIntergenerational Relationship and Continuing EducationWay Forward

10.2%11.2% 11.9%12.2%14.4%17.2%21%24.3%Source: Census and Statistics Department

Chart1

1.20414.57770.6537

1.10444.86690.7536

1.06025.21450.8471

1.00685.60120.9197

1.02065.7411.1349

1.03645.77751.4144

1.02255.69051.7794

1.01795.58362.12

Population(millions)

Aged 0 - 14

Aged 15-64

Aged 65 and over

Age Structure of Population

Sheet1

Expectation of life at birth

MaleFemale

198172.378.5

198674.179.4

199175.280.7

199676.782.7

200178.284.1

200679.184.9

20118085.7

201680.786.4

202181.486.9

202681.887.4

203182.387.8

Child dependency ratioElderly dependency ratioOverall dependency ratio

2001227155382

2006203162365

2011180164344

2016178198376

2021179245424

2026180313493

2031182380562

0-1415-6465 and overTotal population

No.% shareNo.% shareNo.% shareNo.

19961.218.74.671.10.710.26.4

20011.116.44.972.40.811.26.7

20061.114.95.273.20.811.97.1

20111.013.45.674.40.912.27.5

20161.012.95.772.71.114.47.9

20211.012.65.870.21.417.28.2

20261.012.05.767.01.821.08.5

20311.011.75.664.02.124.38.7

No schooling / kindergartenPrimaryLower SecondaryUpper SecondaryMatriculationTertiary: Non-degree courseTertiary: Degree courseTotal

35-64 (Elder cohort by 2031)143477785680638846654816214203912932946312822946

45-74 (Elder cohort by 2021)28514373827936171126666099582422631270901920728

55-84 (Elder cohort by 2011351250477866146935881034372918373611141187370

65 and over (Present elder cohort)317027292592611083280815194624822075747052

Sheet1

72.378.5

74.179.4

75.280.7

76.782.7

78.284.1

79.184.9

8085.7

80.786.4

81.486.9

81.887.4

82.387.8

Male

Female

Year

Number of years

Expectation of Life at Birth

Sheet2

227155382

203162365

180164344

178198376

179245424

180313493

182380562

Child dependency ratio

Elderly dependency ratio

Overall dependency ratio

per 1000 persons aged between 15 to 64

Age Dependency Ratio

Sheet3

Population(millions)

Aged 0 - 14

Aged 15-64

Aged 65 and over

Age Structure of Population

1111

#REF!

#REF!

#REF!

#REF!

0000000

0000000

0000000

0000000

No schooling / kindergarten

Primary

Lower Secondary

Upper Secondary

Matriculation

Tertiary: Non-degree course

Tertiary: Degree course

Educational Attainment (Highest level attended)

Source: Census and Statistics Department

Population Pyramid

Thousand persons

400

300

200

100

0

100

200

300

400

Female

Male

Mid-2031

Age group

85+

80-84

75-79

65-69

70-74

60-64

55-59

50-54

45-49

40-44

35-39

30-34

25-29

20-24

15-19

10-14

5-9

0-4

Thousand persons

400

300

200

100

0

100

200

300

400

Female

Male

Mid-2016

Age group

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

70-74

65-69

75-79

80-84

85+

Thousand persons

300

200

100

0

100

200

300

400

Female

Male

Age group

()

Mid-2001

(Base)

400

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Foreign domestic helpers

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

70-74

65-69

75-79

80-84

85+

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_1082229008.unknown

_1082229010.unknown

_1082229005.unknown

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Population Ageing is first and foremost a success story for public health policies as well as social and economic developmentGro Harlem Brundtland, WHO Director General

Elderly Commission: Symposium on Challenges and Opportunities of an Ageing Population 8 June 2002

first of its kind in Hong Kong, a multi-sectoral and multi-disciplinary approach to discuss the implications of population ageing

Elderly Commission: Symposium on Challenges and Opportunities of an Ageing Population 8 June 2002

policy framework for an ageing societyeconomic and business perspectives of population ageingpublic perception of ageingchanging workforce and concept of retirementbuilt environmentchanging healthcare focus

Contribution of older persons to society

Elderly Dependency Ratiothe number of persons aged 65 and over per 1,000 persons aged between 15 and 64

people in the age group of 15 to 64 years old support persons aged 65 or over

assumption: as population ages, fewer workers tosupport more older persons

But the question is:

are societal wealth and productivity onlygenerated by persons in the age group of 15 to 64?

The fact is, older persons are going to be:

more healthy better educated

and will aspire to play a different role in society

not so long ago, a report of the League of Nations, in anticipation of post World War II labour requirements, described population aging as a major problem for industrial economies where maximum productivity was thought to be reached by men under 35

Research shows:

older workers are usually willing and enthusiastic about learning new skills

older workers can learn, although training techniques may need to beadapted

lower absenteeism and staff turnover among older workers

Research shows:

initial cognitive functioning of most individuals is higher than that needed for most ordinary tasks

older persons are still fit to work at 75 years of age with their IQ and EQ intact

while some older workers may be less flexible and adaptable, they are more reliable, conscientious, and loyal

Employment of older people can be a very positive socio-economic factor. Older workers:continue to pay taxes

contribute to retirement fund schemes

generate wealth for themselves and society

Being employed enhance personal dignity and keep people out of poverty.

Retirement Age

at the time the average life expectancy was 55 years

manual labour was the norm

life in retirement was much shorter

Retirement age came into being in about 1889

with people living longer, healthier lives, can we afford to spend less time working and ever more time in retirement?

Today Hong Kongs average life expectancy for men and women are 78.4 and 84.6 years respectively:

Retirement Age in

USA - being gradually raised to 67 years Japan 69 yearsKorea - 67 years

Flexible or part-time work arrangements for older persons -

would not block the advancement of younger workers, while retaining valuable insight and expertise for the employer

likely to become a necessity as the population ages

a study has shown that late retirees who retired after the age of 65 tended to die within two years after retirement (Sing Lin, Ph.D, Mar 2002 Optimum Strategies for Creativity and Longevity )

but other studies also show that people who retire earlier also die earlier

important message is that we should all take care of our health, have proper leisure and relaxation throughout life

people should be given a choice as to whether or not to retire, or to continue working part-time

Change societys attitude towards retirement and retirement practices -

consider how employment practices could be reinvented so that older persons can continue working to the benefit of the employers, themselves and society at large

Labour Force Participation Rate

Senior VolunteerismApart from paid employment, older persons can still make positive and productive contribution to society through volunteer work.

Senior Volunteerismover 200 000 volunteers, many of them are older persons, in non-governmental sector

12 000 elder volunteers in Social Welfare Departments Senior Volunteer Programme

1 000 elder health ambassadors in Elderly Commissions Community Partnership Scheme projects

the contribution of volunteer work are estimated at between 8% and 14% of Gross Domestic Product

consider ways to recognize the value of voluntary work by older persons in Hong Kong

Volunteering as a broader community investment strategy and means of staff development

timeoff with pay for their staff financial support or assistance in kind company volunteering schemes recognize and support existing staff involvement with voluntary organizations

Opportunities for retiree professionals to share their experience and serve the community in sectors that are usually not involved in ageing related issues

Preparation for Retirementexit programmes for retiring employees for active and healthy ageing

healthy and active retirees lessen demands on public medical and social services

generate business opportunities: investment management, travel services, health products, etc.

Intergenerational RelationshipContinuing EducationReinvest in Ageing

Decrease in average household size and Increase in households with persons 65+

Intergenerational Gapgrowing segregation of the older and younger generations in the domestic settingthe chasm made greater with the digital gapdwindling interaction between different age groups deterioration in the younger generations perception of older people

Continuing Education older persons pursue lifelong learning update themselves and keep up with technological advances in every day living

self-enrichment reconstruct the image of ageing and improve intergenerational connectivity

Reinvest in Ageing

compartmentalized life course: - education when young- work in adulthood- leisure after retirement

Reinvest in Ageingintegrated life course-lifelong learning interspersed with periods of work and leisure and self-reflection

promotion of lifelong learning among elders-joint process of individuals, families, communities and Government

Elderly Commissionadvocate preventive and life-course approach in health and positive image of ageing in the Healthy Ageing Campaign

promote active and healthy ageing according to the World Health Organization Policy Framework on Active Ageing

Initiatives to be considered

rethinking retirement and human resources practices

review volunteering activities for older persons and explore new opportunities

Initiatives to be considereddemonstration projects in cultural, arts and sports arena to highlight the abilities of active, healthy and creative older persons

encourage lifelong learning programmes and promote intersectoral collaboration in the provision of lifelong learning opportunities for older persons

The challenge: to socially evolve in a forward-looking, sustainable manner add life to years after adding years to lifetransition into a satisfying retirement in old agea win-win situation for older persons and the rest of society

Thank you!