7.L. Practice session: Is there an investment case for health at older ages?

Abstract The global demographic landscape is undergoing significant transformation due to increases in longevity and declining birth rates. According to the United Nations, the world’s population aged 65 and over is projected to more than double, reaching over 1.5 billion by 2050, while global fertility rates are expected to decline to 2.4 births per woman by 2030 and continue decreasing to 2.2 births per woman by 2050. Ageing populations have frequently concerned decision-makers due to the potential implications of changes in population age-mix for labour markets and the economy, as well as for the sustainability of public programs and spending, particularly the health sector. For example, as the share of the population at older age increases, there are concerns over how to cope with the possible economic implications of having a smaller share of people at traditional working age (with potentially more people obtaining income security through both public and private pensions) and how to respond to greater health and long-term care needs. Without appropriate policy responses, there are worries that demographic changes will have inevitable consequences for households, public finances and possibly for economic growth and development. To support policy decisions related to population ageing it is important to have informative evidence and modelling tools that allow policymakers to better understand both the implications of population ageing as well as the consequences of policy action or inaction. To this end, this session presents three recently developed modelling tools that aim to address a number of policy relevant questions related to ageing: 1) How does ageing affect health financing and are health systems unsustainable? 2) How does ageing affect economic objectives and does health at older ages matter? 3) Can we develop economically relevant measures of health at older ages if older people do not have formal ties to the labour force? Using data and analyses from a range of European countries, we will demonstrate empirically that the way ageing affects health financing systems, economies, and societies more broadly reflects policy choices and is not an inevitable consequence of demographic changes. Key messages • Policymakers must prioritize informed policies to comprehensively understand the impact of aging on health financing and economies, facilitating the development of sustainable solutions. • Immediate action is imperative to address the implications of aging on labor markets and public spending, ensuring future economic stability and safeguarding societal well-being.