Japan is facing rapid expansion of aging population. (Alamy via The Telegraph)

For the First Time, G-20 Considers Aging as Global Risk

World’s top policymakers are starting to tackle the aging issue at G-20 finance ministers and central bank governors meeting held in Fukuoka, Japan on Saturday (6/8)—finally, the first time in history.

The increasing number of the aging population has been considered as a major domestic issue in particularly wealthy nations like Japan, South Korea, Italy, Spain according to the Organization for Economic Cooperation and Development (OECD). Due to the exacting financial responsibility, society’s lifestyle has shifted to ‘not having children’ which result in a shrinking birthrate which pushes the rapid expansion of the elderly population.

Countries were warned to tackle economic issues caused by the demographic phenomenon, where the host Japan was eager to share its experience. Japan finds itself scrambling to cover the cost of national pension as the workforce is shrinking fast. Many Japanese elderly fearing cuts of their benefits, while its young population worries that a pension would not exist within the time of their retirement.

Japanese Finance Minister Taro Aso told that nations must be ready to act for solutions before the aging population rears its pressure on the economy that can result in debt and fiscal risk for the whole country, as well as individuals.

OECD chief Jose Angel Gurria said that one solution to counter the economic impacts requires a change to the way society organizes itself and encourage women and elderly workers to play a greater role in the workplace as well as urge the young people to prepare better for their financial future.

According to OECD, it is projected the world to have more than two billion residents aged 60 and above by 2050, which doubled the number than in 2017. However, countries have failed to update their pension and employment systems to adjust to the changing demographics.

Source: https://www.straitstimes.com/asia/east-asia/in-historic-first-g20-weighs-ageing-as-global-risk-warns-countries-to-address-issue