Article: Are the elderly a burden on the economy?

Man is unique
We ignore the fact that only in our species do the old dominate the young. The silverback gorillas are genetically closest to humans. Even there, 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 people matter more. 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 CEO with gray hair is considered more trustworthy.

Contribution to the economy
For us, age brings respect, not humiliation like a gorilla. 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, the hypertension medicine Lisinopril is prescribed about 9 crore times every year in the US. Similarly, about 2.5 lakh knee transplants are done every year in India.

old people's market
The senior citizen market is growing rapidly. It is estimated that this market can grow at a rate of 6.2% per annum over 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 continues, the spending power of the elderly in India will reach one trillion dollars by 2050.

Government assistance
The elderly population also contributes to the economy through their pension funds. These funds give money to the government 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 to develop the country's infrastructure.

Wealthy consumers
The richest age group in the world is the elderly. 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 very high. A report by the American think tank Brookings says that in 2020 the elderly were spending $8.7 trillion. By 2030 their spending power will increase to $15 trillion. In Japan, a lot is said about the aging population, but there the contribution of pensioners to the expenditure is more than 40%. This figure has doubled since 2002.

Silver Economy
People born before 1965 in America are increasing their spending year after year. This is 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 gets stuck in inflation, deflation and other economic problems. During Covid, this Silver Economy would 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. The healthcare market in India 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 benefits of being old, 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 household. However, not every elderly person in India is singing lullabies to the children at home. One-third of senior citizens here are still working. They have postponed their retirement indefinitely. 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 a hindrance to progress. Yes, they do not produce as much, but they make up for it by consuming. It is now the responsibility of the youth to step up and produce.

(The author is a sociologist)