Age friendly goods and services an opportunity for social and economic development (Warsaw, October 2012)

Transcription

1 Age friendly goods and services an opportunity for social and economic development (Warsaw, October 2012) Approach to active ageing for the next period 1 Marta Koucká Ministry of Labour and Social Affairs Lenka Klímová Age Management, o.p.s. 1. Demographic development in the Czech Republic The Czech Republic faces a number of socio-economic challenges. In 2011 the real GDP growth was 1.7% and the government deficit was 3.1%. There is still a challenge of consolidating public finances including the long-time sustainability of the pension system. Both the employment (70.9%) and unemployment (6.7 % in the first quarter of 2012) rates are better than the EU average. However, due to the demographic development we need to address various problems such as pension system reform and older people employment. Due to the current economic crisis the instant solution of such problems is not an easy one. On the one hand the current crisis has negative consequences for unemployment rates in the Czech Republic as well as other EU countries. On the other hand, the population of the EU Member States including the Czech Republic is ageing, which leads to prolonged retirement age in order to balance the pension system. All of this has serious impact on the employment of older citizens therefore the society must address this situation and adopt measures to improve the labour market situation of older age groups. Numbers of older people will change rapidly in the future. Demographic prognoses are as follows: Number of people above 65 will rise from 1.7 mil in 2012 to more than 3 mil in 2050; Number of people above 75 will rise from 0.7 mil in 2012 to more than 1.6 mil in 2050; Number of people above 85 will rise from 0.2 mil in 2012 to more than 0.5 mil in We can see that there will be major demographic change in the population of the Czech Republic in the coming decades. In 2050 roughly one third of citizens will be above 65 and their numbers will double. More importantly the numbers of citizens in economic active and inactive age will equal. 1 Prepared for the Peer Review in Social Protection and Social Inclusion programme coordinated by ÖSB Consulting, the Institute for Employment Studies (IES) and Applica, and funded by the European Commission. ÖSB Consulting,

2 Population ageing Ageing of population is the global phenomenon which leaves us with several crucial challenges in relation to the situation of the elderly (50+) in labour market and life quality of seniors economically dependent people above age of 64. Problems are significant in both of these categories. Age category years (economically active citizens prior to retirement) The employment rate of seniors in this category is on the EU average. In reality that means the employment rate in the Czech Republic is better than in other new EU Member States, however, worse than in old EU Member States. Due to rapid growth of number of citizens in this category the exclusion of the elderly from the labour market is not acceptable in the long run. Development of sound conditions for tapping the workforce potential of our experienced fellow citizens has to become the major task for the Czech Republic. For only those countries which will be able to make use of this potential will be in the great competitive advantage against the countries with a persisting negative attitude to ageing generally. Age category over 64 years (economically dependent citizens) In the last 20 years the number of retired seniors is rising slowly in comparison to old EU Member States where numbers of economically dependent people climbed rapidly and therefore the necessity for solving problems linked to population ageing arose much earlier. Hence we may now draw inspiration from their respective measures. In the Czech Republic the substantial growth of economically dependent citizens started only after 2005 and it will peak after the year 2040 when it is presumed that it will get even more serious than in other old EU Member States. In the light of these circumstances we have to start addressing this problem as soon as possible in order to mitigate the reality of such development. Graph 1: Age category over 64 years (economically dependent citizens) in the last 20 years Czech republic European Union

3 Graph 2: Age category over 64 years (economically dependent citizens) in the next 50 years 60 Czech republic European Union Pension system and its impact on the silver economy The highly developed multi-pillar pension systems are operational for quite a long time in other old EU Member States. That is the reason why in such countries seniors have much more financial strength and economical influence to bolster the silver economy. The situation in the Czech Republic differs. A major part of pensions are provided from the state-run continuous pension system (more than 90%) which is derived from the economic performance and which is affected by the current crisis. That is the reason why the financial situation and the purchasing power of present seniors dependent on state-run pension system will not improve significantly. Other source of income is the supplementary pension insurance which is so available for about 20 years however its scale is too small to substantially enhance the economic situation of seniors. Nevertheless we can currently observe several arising trends. There is a building social gap between poor and rich seniors. The more financial secured group is able to make use of luxurious old people s homes, specific senior travel offers and other various services for seniors. The highest economic growth of the silver economy we can anticipate in the sector of pharmacy, tourism, leisure, social care and banking. This increase will peak in when strong population of 70s reaches the retirement age. 3. Proposed change in the pension system of the Czech Republic after 2012 The adoption of three pillar systems comprised from state-run continuous pension system, supplementary pension insurance and the new voluntary funded pillar. This new voluntary funded pillar will be created with the aim to diversify sources of financing pensions and to contribute to higher average pensions. However, this is 3

4 dependent on the proportion of workers participating in the new pillar and on the rate of return over the long run. Although the outcome of this reform will only have results after twenty or thirty years and the participation in this pillar is mostly for the high-income class of citizens. National Strategy To address the situation, the Czech government is preparing the third National Strategy Supporting positive Ageing for the period This strategy defines series of priorities derived from the Europe 2020 strategy and from aims of the European Year for Active Ageing and Solidarity between Generations. These priorities can be divided into six main areas: Life-long learning; Employment of older workers; Quality life environment for seniors; Volunteering and intergenerational cooperation; Healthy ageing; Care for the elderly. Within those areas concrete measures will be developed, including specific time table and responsibility for their implementation. The main aim of this strategy is to change thinking and attitude of society towards active ageing and stimulate interest of society in this area. It will require measures from law adoption, changing of state institutions behaviour as well as changing the behaviour of citizens themselves. Measures adopted in the document in question will aim to support employment of disadvantaged groups, bolster the instruments of active employment policy, endorse individual approach, ensure the financial sustainability of the pension system and to deployment of health-social care system, which will be economically sustainable with regard to rapidly ageing of population. Main priorities of Strategy: 1) Life-long learning Increase in participation of seniors in life-long learning as the means for keeping or returning to labour market. Development of out-of-work learning programmes. Increase the awareness of the necessity of life-long learning. Enhancement of new forms of life-long learning (voluntary activities). Support for the universities of third age, their accessibility and learning methods. 2) Employment of older workers To create conditions to motivate citizens so they would participate in the labour market for a longer period. Achieving a more age-friendly labour market through age-management policies and enterprises. Influence the social attitude towards ageing. 4

5 Strengthen the instruments of active employment policy. Support for intergenerational cooperation. Revision of the pension system in order to ensure longer participation of citizens in the labour market. Measures focused on Age Management support. Improvement of awareness of Czech employers and managers of Age Management concept. Legal amendments in order to implement Age Management into Labour Code. Improving the labour market flexibility by supporting part-time jobs, flexible working hours and other flexible forms of labour. Introduction of share working positions for young and older workers. 3) Quality life environment for seniors To create environment-friendly for all generations, to ensure older people affordable housing, secure environment, improvement of access to health care, social care, barrier-free public transport services and easy access to modern computer technology and internet. Measures Public support for public transport. Multi-generation living support in order to limit solitude and social exclusion. Encourage development of specifically senior-friendly services and products in order to bolster silver economy. 4) Volunteering and intergenerational cooperation Participation of seniors in society. Expanding possibilities of voluntary service programmes. Enhancement of intergenerational dialogue and solidarity. Informational campaigns about contributions of seniors to society. Development of multigenerational centres. Support for volunteering projects. 5) Healthy ageing Aim: Encouragement for life-long healthy life style. Involve municipalities and regions into programmes of National-wide networks of Healthy Cities. Informational campaigns. Focus on prevention. Educational programmes in the area of healthy life-style. 5

6 6) Care for the elderly Securement of quality health and social care. Development and support of new social services. Enhancement of long-term health care with specific diagnoses differentiation. Individual approach, expansion of local social work. Improvement of conditions for family member s care including employer motivation for endorsing flexible work means for workers carrying out family member care. Age Management Strategy in the Czech Republic The project Age Management Strategy in the Czech Republic was implemented in the years by Association of Adult Education Institutions of the Czech Republic in cooperation with partner organisations - Masaryk University in Brno, Palacky University in Olomouc, Labour Office in Brno and Finnish Institute of Occupation Health (Helsinki, Finland). The project was co-financed by the European Social Fund. Age Management in the Czech Republic Age Management is defined as a management with respect to age and abilities of employees. All people should have the opportunity to fulfill their potential and not be disadvantaged because of their age. Age Management provides comprehensive approach to the solution of the demographic situation and demographic changes in the workplace. The main principles of Age Management are Good knowledge of the age structure of society and the company; Fair attitudes to aging; Comprehension of individuality and diversity. Age Management is implemented at 3 levels Society level - the intention is to support social cohesion and economic growth. This level includes pension policy, social policy, education system and employment policy. Company level the purpose is to maintain and to develop the human resources. Therefore, focus on the socially responsible behaviour of employers and eight pillars of Age Management as part of the corporate social responsibility is crucial to success. Individual level it is in the interest of every individual to maintain and keep up their own employability. This includes planning of the future with regard to longer working career, lifelong learning and attitude to own health. Experts of the Finnish Institute of Occupational Health identified eight pillars - the comprehensive solution concept that is based on national policies respecting the specifics of the company and nature of its workforce. The concept consists of following pillars: Knowledge on ageing; 6

7 Positive attitude towards age; Good management that understands individuality and diversity; Quality and functional age strategy; Good work ability; High level of competence; Good organisation of work and working environment; Happy life. The main outcomes of the project are two publications Comparative analysis of the conditions and approaches to the target group 50 + in the labour market used in the Czech Republic and Finland. Age Management for work with the target group 50 +, Methodological handbook. Age Management Strategy in the Czech Republic aims to change attitudes towards aging; connect proposed measures of Age Management to pension reform, so that there will be a full reform of the working life, not just a mere increase in the retirement age; collect and disseminate examples of good practice at national and international level; give wide publicity to the Age Management concept, make it a part of personnel management and corporate social responsibility; integrate Age Management into the National strategy promoting positive aging for the period Source Age Management to work with the target group 50 +, Methodological handbook ISBN Public Database of the Czech Statistical office; National Social Report of the Czech Republic for 2012 Comparative analysis of the conditions and approaches used in the Czech Republic and Finland 7