Article: Are the elderly a burden on the economy?

Author: Dipankar Gupta
There is a strong rumor about discrimination against the elderly. We are told that the elderly are obsessed with living longer. This has led to their population becoming too large for the young to bear. This is not only economically incorrect, but also underestimates a fundamental characteristic found in human beings.

Man is unique
We ignore the fact that only in our species the old dominate the young. Genetically the closest to humans are the silverback gorillas. Even in them, leadership has to yield to younger rivals. The young are stronger and more attractive to the females of the group. In this respect we humans are unique in nature. Here the old have more say. In America right now two men over 75 years of age are competing against each other for the most powerful position on earth. If we talk about the corporate world, there the CEOs with grey hair are considered more trustworthy.

Contribution to the economy
For us, age brings respect, not disrespect as it does for gorillas. But the question is, what about retirement and weakening bodies? The answer is that even at that time, the elderly continue to contribute. They keep the economy running. The pharmaceutical industry depends on the elderly to sell its medicines. To look at some examples, in the US, the hypertension drug lisinopril is prescribed about 9 crore times every year. Similarly, in India, about 2.5 lakh knee transplants are done every year.

old people’s market
The elderly market is growing rapidly. It is estimated that this market can grow by 6.2% annually in the next seven years. This kind of market is still a new thing in India, but it is expected to reach $ 12 billion by 2030. If the current situation remains, the spending power of the elderly in India will reach one trillion dollars by 2050.

Government help
The elderly population also contributes to the economy through their pension funds. This fund gives the government money for long-term investment at a low interest rate. In many non-OECD countries, the growth of pension funds has outpaced GDP. From Canada to Uganda and India, there are many examples where pension funds are helping in developing the country’s infrastructure.

Wealthy consumers
The elderly are the richest age group in the world. The total consumer class in the year 2020 was 3.9 billion. By 2030, this figure will increase to 5.6 billion. By that time, 76% of the elderly will be included in this consumer class. Their number will be 11% more than any other category.

ahead in spending
The spending power of the elderly is huge. A report by the American think tank Brookings says that in 2020 the elderly were spending 8.7 trillion dollars. By 2030 their spending power will increase to 15 trillion dollars. In Japan, a lot is said about the aging population, but there the contribution of pensioners in the expenditure is more than 40%. This data has doubled since 2002.

Silver Economy
People born before 1965 in America are increasing their expenditure year after year. This is the reason why some Americans call the silver economy their secret weapon. This economy is of products and services related to the elderly. It is used when the country’s economy is caught in inflation, deflation and other economic problems. During Covid, this silver economy must have worked as a silver bullet for many countries and helped them overcome the crisis.

Government efforts
The digital health market is also growing rapidly with the help of senior citizens. In India, the healthcare market is expected to reach Rs 1.74 lakh crore by 2027. Keeping this in mind, the government has launched Senior Age Growth Engine or SAGE for the elderly. Its job is to promote consumer goods for the elderly.

Role in the family
There are many other advantages of being elderly, especially in India. About 48% of families here are joint. In these families, senior citizens contribute in ways that cannot be bought with money, but which are very valuable. This includes raising grandchildren and managing the house. However, it is not that every elderly person in India is singing lullabies to the children of the house. Here one-third of the senior citizens are still working. They have postponed their retirement to an indefinite date. Their pace may be slow, but they are still in the race.

Responsibility on youth
Unlike old gorillas, humans continue to contribute even at an older age. Yet they are seen as an obstacle to progress. Yes, they do not produce as much, but they make up for it by consuming. Now it is the responsibility of the youth to step up and produce.

(The author is a sociologist)