BAH on Demographic Changes

BAH (Booz Allen Hamilton) has a business publication called Strategy and Business which has some great research.  I found this recent article on the changing demographics worldwide to be interesting and relevant to what we see in the US (which has a big implication on healthcare).

Here are a couple of quotes and facts from the article:

“To prepare for the implications of aging populations, individuals, organizations, and society as a whole must confront assumptions that are no longer valid.”

  • According to United Nations projections, the proportion of the global population over 65 years old will triple between now and 2100, from 7 percent to 21 percent.
  • Assumption 1: We’ll work long enough to pay for our retirement. …But suveys show that, until the age of 75 or so, people consistently underestimate the length of their retirement and under-provide for it financially.
  • Assumption 2: As our society gets richer, we can afford to retire earlier. The basic flaw in this is that people are not taking into account increasing longevity and its associated higher costs.

  • Assumption 3: It is useful to retire people early, because there are not enough jobs for everyone.

  • Assumption 4: Income and status at work rise linearly, and people retire at their most senior position.

  • Assumption 5: We accumulate assets while working and spend them during retirement.

  • Assumption 6: During retirement we won’t change residences more than once.

  • Assumption 7: The state will provide social and health-care services for us in our later years, allowing our children to inherit a significant portion of our estate.

  • For a couple who reach the age of 65, there is a 50 percent chance one of them will survive to the age of 90, and a 17 percent chance that one will reach 100.

“Restricting compulsory retirement will foster — or force — changes in work culture and minimize ageism. Our mental model is already changing from one of a ‘cliff edge,’ with an abrupt change from work to retirement, to more of a ‘plateau.’ “

All of this will have big implications on how we pay for healthcare, what types of services are needed, how we interact with these groups, etc. 

No comments yet... Be the first to leave a reply!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: