AGE contribution to the European Commission s consultation on Europe s Social Reality : a stocktaking 14 February 2008 Introduction Europe s social reality has become a subject of intense debate at EU level and AGE welcomes the opportunity provided by the Commission s public consultation on Europe s social reality to submit its formal position. This position reflects extensive discussion among AGE members on the core interests, aspirations and concerns of older people in today s European Union and draws on input from across AGE s Europe-wide membership base. Given the key impact of EU policies on the lives of older people in contemporary European societies and their interest as core stakeholders in all aspects of societal progress, AGE members have read with great interest the consultation papers 1 launched by the Commission and are pleased to set out below their views on how the current challenges in European societies can best be tackled. In particular, AGE presents its recommendations on the development of the strategic objectives and instruments of the social policy agenda which it trusts will be taken on board in the Commission s reflections on the renewal of the Social Agenda. The AGE response follows the structure presented in the latest Communication on Opportunities, access and solidarity: towards a new social vision for 21 st century Europe (COM(2007)726 final) and correspondingly puts its focus on changing social realities in society, in the economy, and in lifestyles and values. In particular, it addresses the key areas for action proposed by the Commission. As an overarching theme, it considers the challenges of demographic change and the related issues of social and economic sustainability and the necessity of forging greater equity and solidarity between the generations. Following this social reality stocktaking 1 BEPA consultation paper on Europe s Social Reality and the related Communications on Social Reality Stocktaking: Interim Report to the 2007 Spring European Council (COM(2007)63 final) and Opportunities, access and solidarity: towards a new social vision for 21 st century Europe (COM(2007)726 final) 1
exercise, AGE would like to recommend that intergenerational solidarity becomes a horizontal objective of the renewed Social Agenda. General remarks The European Union s agenda is rooted in the strategic objectives of prosperity, solidarity and security with a continued focus on jobs and growth. Public expectations are high but confidence in the Union's ability to meet those expectations will only come through delivering solutions which have a direct and positive impact on citizens' lives. Demographic ageing is one of the key challenges facing European societies and their labour markets today. The scale of this challenge is ensuring that the issue of societal ageing will remain at the centre stage in European political debates for several decades at least. Ageing is changing our societies in important and deep-seated ways and it demands a comprehensive assessment and a fundamental reworking of our economic and social policy framework. Furthermore, to respond to the challenges presented by demographic ageing and the shifting social and cultural parameters, major reforms are needed at EU, national and local levels. Demographic developments are impacting on the organisation of employment and on the growth potential of the European economy as well as on Europe s pensions, health and social care systems. New challenges emerge and will require innovative policies to empower everyone to play an active role in society and to promote a greater solidarity between generations in order to achieve a cohesive and sustainable society. Society Globalisation and demography Globalisation and demography are the two main driving forces shaping the development of today s European societies. Demographic trends mean longer and healthier lives and raise issues such as the new costs of an ageing society, intergenerational equity, the increasing importance of care and work/life balance in sustaining family life, the need to promote better a relationship between the generations and new risks of poverty. Contemporary demographic realities The socio-economic changes reflected in the transition to a global, postindustrial and ageing society have created new opportunities, but also new social risks. The capacity of the welfare state to guarantee the wellbeing of all its citizens over an extended time frame through adequate and sustainable employment and social protection policies is being undermined. A growing proportion of Europeans are now enjoying longer and more active retirement. This has far-reaching implications for welfare systems. 2
At the same time, access to health care and healthy life expectancy still vary considerable between income groups and regions. Social risks such as old-age dependency and social isolation are expected to rise as a result of demographic trends. Increased life expectancy Older people today live on average 30 years longer than their antecedents a century ago and they are better educated and much healthier. The longer life expectancy that Europeans enjoy today is an achievement which is valued across the EU. While rising life expectancy is one measure of good health, perhaps a more concrete measure is the number of 'healthy' life years that older people today often enjoy. The need to accept a new demographic paradigm A new demographic paradigm needs to be accepted by society and the perception of older people needs to be recast, presenting them as a vivid, animated and integral part of society, still contributing to the fulfilment of important societal tasks. What is needed are corresponding policies and a greater awareness that older people make a valuable contribution to the communities they live in. The valuable contribution that older people make to society Older people generally work hard for at least a decade after their retirement - as informal family carers, providing informal help to other older people in their neighborhood or in civil society organisations. Usually this engagement remains unnoticed. AGE would like to stress that older people s present contribution to society forbids any reproaches in the style of a drag on the potential growth. The present generation of older people presents a resource and a potential to be further developed. Several years ago, in EU terminology the ageing society was considered as a problem ; it developed to being a challenge, and after that to an opportunity. Whilst we are pleased with this change in EU rhetoric, there is still a long way to go to change mentalities and eradicate all ageist attitudes. Enabling the active engagement of older people in society If we accept the idea that older people are an important source of experience, knowledge and vitality, society has to make use of their potential to contribute, i.e. to find appropriate organisational, institutional, legislative, educational, and financial tools to enable older people to participate fully as active members of society. For instance, measures could be taken to raise awareness of opportunities for community involvement, funding for projects and adult education facilities. Local initiatives based on intergenerational solidarity where both young and older people support each other should be promoted. 3
Education Society needs to invest in competence development for lifelong engagement in work and society. The provision of opportunities for learning and ongoing training are needed throughout the life course. Lifelong learning has to be available at all life stages, including for seniors. There are a whole range of benefits this brings to the individual, the workplace and society at large. Lifelong learning must include a focus on older people. Education and training needs have to be adapted to constantly changing labour market demands in terms of skills and knowledge and should take on board older people and the gender dimension. Employment The proportionately low employment rate of older workers needs to be improved in line with the Lisbon objectives. Institutional barriers to equal access to employment opportunities as well as negative attitudes from employers need to be overcome in many Member States. The low employment rate for those aged 50+ represents a waste of human potential, a loss in national productivity, a higher financial burden for social protection systems, and a waste of skills that the EU cannot afford to loose in today s globalised economy. This issue needs to be addressed at EU level as there are common challenges that will be easier to overcome if Member States coordinate their actions. The labour market culture must become more age friendly i.e. more inclusive of both young and older workers. Working conditions and career opportunities must be improved for both of these age groups. It is important to support flexible methods to prolong working lives for those older people who wish or need to work for longer. More attention should be paid to the adaptation of the work place to the specific needs of our ageing workforce. A healthier work environment needs to be promoted and a more systematic renewal and learning of ICT skills and knowledge needs to be facilitated for workers of all ages. The particularly vulnerable situation of older women and issues concerning the gender pay gap, gender segmentation in the labour market, the fewer opportunities that exist for older women for training and career progression, weaker job tenure, reduced access to social benefits and the difficulties faced by those who care for elderly relatives to reconcile work and private life should all be addressed. Economy Equipping older people for the post-industrial society Europe has made a rapid trajectory to a post-industrial knowledge and service economy, the nature of work has been transformed and there is a subsequent need to equip older people for these developments. 4
Income Pensions Working life is being radically transformed by the combined effect of technological progress, changing economic demands and the rapid growth in the knowledge economy and services sector. The workforce has to be equipped to adapt to an increased pace of change. This requires particular attention to be paid to older workers needs. The vulnerability of older people is often related to their lack of financial resources. Women are in a particularly vulnerable position as their right to a pension income in old age is not always a direct one (survival benefits) or they may not have acquired adequate pension rights for diverse reasons (career breaks, low paid jobs, etc). Minimum income is in AGE s view the best answer to fighting poverty. Its impact on the poverty of older people has to be examined. Minimum income schemes should be designed from the perspective of the fundamental right to a decent income and not that of a supplementary monetary assistance. Access to information and education on how to build personal income in old age is necessary to prepare people at an earlier stage to deal with the reforms of pension schemes. Older people in principle should enjoy a fair share in the growing wealth of their society. Recent pension reforms have decreased the adequacy of pensions and it is anticipated that many more pensioners will be at risk of poverty, in particular women and those with shorter or broken careers such as migrants and the long-term unemployed. The first pillar pension schemes should remain the main income source to assure an adequate living standard above the poverty level in old age. A minimum income should be a given due for everyone linked to the right to a dignified life and should be independent from participation in the labour market. The non indexation of pensions increases the risk of poverty, in particular for the very old. Remedies lie in part in job creation, adaptation, skill preferences, training for the less educated and those who are most at risk of poverty such as women and migrants. AGE considers that Member States must guarantee that 1st pillar pensions are indexed to average earnings so as to ensure that pensioners keep up with progress in society s prosperity. Price indexation is not enough as it would place pensioners in a detrimental economic position over time. Retirement From the perspective of society as a whole, early retirement is not only a waste of valuable human resources but also a huge financial burden for the pension system and all areas of social protection. However, many workers have been encouraged to take generous early retirement packages providing them with a reasonably high income. 5
They cannot be blamed for that as they were victims of discriminatory practices which forced them out of the labour market. In addition, it should be kept in mind that many more older workers over 50 with neither a job nor access to such pre-retirement schemes are facing a very difficult situation today. They become long-term unemployed with a decreasing possibility of finding employment. Whilst we understand the need to put an end to the pre-retirement schemes, AGE members feel that this can only be done when quality jobs are made available to older workers and when the necessary measures will be put in place to help them take up these opportunities and re-integrate into the labour market in a meaningful job. In-depth reflection at EU level is needed to understand how to resolve these problems and prevent older workers from becoming trapped in long-term unemployment. Older workers need to be re-integrated into or retained in the labour market in ways that effectively address both Europe s growth and jobs objectives and the demographic challenge. On page 11-12, the paper claims that In the EU 15, the ageing society means for many at present a long and comfortable retirement. AGE would like to stress that this is unfortunately not the case of a significant and increasing number of older people, in particular older women, and that it is essential that the needs of the more vulnerable groups of older people should be adequately addressed. There are also huge variations between Member States. It is also stated on page 26 that The ageing population raises major public policy issues related to the sustainability of pensions, the rising costs of health and care for the elderly and the drag on potential growth in Europe as the social burden is assumed to rise. AGE is critical of the reference to drag on potential growth and recalls that older people are an asset and a resource. Older people deserve to be portrayed in a more positive light. The concept of productive ageing should be highlighted and the huge contribution that older people bring to their communities in paid work and volunteer activities and as consumers should be acknowledged. The considerable transfer of knowledge and assets from the older to the younger generations should also be taken into account. The European Commission should avoid using such discriminatory language as this perpetuates negative stereotypes about ageing and older people. Lifestyles and values Well-being While all definitions of well-being incorporate an economic dimension, various natural and environmental factors also bear an influence on this. These include age and gender. In assessing well-being, the following factors were also cited by our members as being essential: good health, decent housing, social networks, physical and psychological security, and a clean and sustainable environment. However, it was stressed that adequate income in old age remains the most important dimension. 6
Active inclusion and non-discrimination Older people have a vital role to play in contributing to the communities in which they live and to society as a whole. They constitute a growing and increasingly active societal group which forms a vital part of Europe s new social reality. Social cohesion as a broader notion which extends beyond the fight against poverty and social exclusion has to be promoted. Each generation has to make a contribution to the well-being and prosperity of society. Combating the isolation of older people is a key challenge as this can lead to other problems such as social exclusion, depression, alcoholism or suicide (older people are at a much higher risk of these problems than people of middle age). Poverty has to be analysed in terms of quality of life. Adequate indicators to measure the non-monetary aspects of life should be developed at EU level to enable a better assessment of poverty and social exclusion in old age. The particular requirements of older migrants and those from so-called ethnic minority backgrounds need to be considered. AGE welcomes the Commission s initiative to publish a Communication on better meeting the needs of older people and hopes that concrete proposals will be put forward for action at EU level to complement Member States action to fight social exclusion and discrimination faced by older people. Gender equality The gender perspective has to be addressed. Two major challenges remain in this regard: the reconciliation of work with family life and / or caring duties; and ensuring an independent right to an adequate pension for women in old age. Suggestions for remedies include the issue of ensuring equal pay for equal work and care credits for family carers (for looking after both children and older relatives) to compensate for career breaks. Pressure on the extended family Older people who are themselves in their 50s or 60s have to balance the care of elderly parents with the demands of work. This is likely to be a new source of pressure, in particular on women in late middle age, the so-called sandwich generation who often also take responsibility for caring for their young grandchildren. AGE call for a richer debate about the respective responsibilities and roles of the family, local community and state in caring for the elderly (and young children). Intergenerational solidarity Civil society organisations representing both older and younger age groups should develop constructive contacts with their national policy 7
makers and social partners. Too often, labour market policies targeting one of these two age groups are still perceived as being detrimental to the other one, i.e. measures in favour of older workers are falsely considered to result in greater unemployment among the young. AGE seeks to redress this misperception and calls for labour policies that seek to create an age friendly labour market, i.e. measures that support everyone who needs to work. Reinforced social links between generations can generate further equality and justice for all. The advantages accruing from economic growth appear less well distributed between the generations than in the past. Reinforcing social links between generations can promote more mutual responsibility and will generate further equality and justice across society. Health and long-term care Extended life expectancy brings a higher risk of complex and chronic health problems. Individual responsibility for healthy ageing comprises hygiene, healthy lifestyle and nutrition. Collective responsibility covers the necessary infrastructure to access healthcare, health prevention, the environment (unpolluted air and water), consumer protection (healthy food), prevention of occupational health risks, etc. Prevention (healthy food, quality of working environment, stress management, physical activity, etc) remains a crucial element in any policy response. It is less expensive to prevent a problem than to treat it. Support to family carers is absolutely necessary, in particular for those caring for a relative who is very old. Adaptable, integrative and integral systems of support should be sought to help and care for the elderly in long-term care. AGE believes that the attention paid to elder abuse in care institutions is not enough. To fully understand the complexity of abuse towards older people, particular attention also has to be paid to domestic violence and abuse. Risk of physical, psychological and financial elder abuse within both the family and in institutions has to be identified. Specific indicators have to be developed, awareness about these abuses raised and measures taken to prevent them. AGE welcomes the Commission s initiative to publish a Communication on the issue of elder abuse and the quality of long term care. Key areas for action Investing in youth A strong start in early life is increasingly recognised as important in determining life chances. Investing in the early years, education and training yields high returns and offers substantial pay-offs later in life, not only in terms of employment and productivity but also in terms of reducing the economic and social costs from a lack of attainment. 8
Investing in youth goes some way to preventing poverty and deprivation in later life and facilitates the attainment of equality of opportunity and active citizenship. It fosters the individual s ability to progress in the job market, access quality healthcare and social protection, and participate fully in society. A well functioning, confident and buoyant society which invests in its human capital and creates opportunities for individuals to progress throughout their life cycle is essential to sustaining economic growth, labour market participation, living standards and to preventing or combating social exclusion. Investing in fulfilling careers With the rapid ageing of the European population and longer life expectancies, extending working lives has become a key priority at EU level. In a lifecycle approach, labour markets must be made more flexible and provide the necessary incentives and safeguards to allow workers to benefit from more diversified working lives. Active labour market policies targeting the older age group are needed together with effective follow-up to ensure a change of culture and approach to older workers. The most efficient measures are those which aim at making age a neutral factor. There is a need to provide an inclusive, attractive, safe and adaptable work environment which takes on board the needs and expectations of older workers. Opportunities and incentives for life-long learning, the creation of incentives to encourage older workers to remain longer in employment and the promotion of a positive approach among employers to older workers are necessary components in raising the employment rate of those over 50 years of age. Older workers will be more inclined to remain in employment if they are offered jobs and working conditions which enable them to make the best use of their skills and experience and where their performance and contribution continue to be valued. Self-employment is another important option for older people and can provide them with the flexibility to reconcile paid work with other responsibilities or commitments. Moving to self-employment should not however result in a decrease in the level of social protection. Investing in longer and healthier lives From a life cycle perspective, the social and financial implications of ageing require a substantial rethink of intergenerational responsibilities and the way the associated costs are shared between generations to develop innovative, fair and sustainable solutions. Healthy ageing is not just about prolonging life. It is about promoting the necessary means to enable older people to continue to participate in society and to cope with daily life. It concerns learning, the exchange of good practice and the development of strategies and policies designed to promote older people s individual well being and personal growth. 9
Investing and improving health is a responsibility shared by the European Union, Members States, civil society organisations and individual citizens. It is importance to create an enabling environment as well as direct approaches to promoting healthy habits and lifestyles. It is also important to promote a positive and integrated approach to health by addressing a range of social, economic, housing, transport, new technology, education and other relevant policies that have an impact on it. If the European Union is to develop a wider healthy ageing strategy, there is a need for a holistic and integrated approach. The development of a healthy ageing strategy must take into account the gender dimension, ethnicity, and the individual differences and characteristics of older people who represent a diverse and disparate group. Investing in gender equality Ageing-related responsibilities fall disproportionately on women. If Europe is to continue to shift to a model of social and tax support to individual rights / duties and the dual earner family, addressing pay gaps, reviewing the tax system to improve work incentives, developing affordable childcare and eldercare, the spread of family-friendly practices in the workplace with more flexible leave arrangements over the lifetime are essential. To better reconcile employment with other responsibilities such as caring for dependent relatives, working conditions which facilitate the meeting of dual responsibilities are crucial. The provision of specific measures such as job shares, part-time work, carer s leave, telework and flexible working hours would encourage a greater participation of older women in the labour market. AGE believes that gender equality must be promoted as an expression of individual rights irrespective of age and should be applied in all areas of life during the entire life-course. Priorities for action should include: o Actively promoting the equal representation of older women and men in all areas of society; o Providing suitable working conditions for women i.e. to allow them participate in the labour market with the possibility to reconcile professional activity with family life and caring duties towards dependents; o Ensuring that the particular needs of those who fall victim to discrimination on the basis of their age and gender are identified, understood and addressed. AGE considers that there is a need to: o Mainstream gender equality within all EU policies; o Increase understanding of age discrimination from a gender perspective; o Formulate policies to effectively deal with issues of gender and age as part of a comprehensive strategy addressing demographic change; 10
o Reflect the realities that older women face and develop a more targeted and life-course approach in the planning and implementation of policy measures and actions. Investing in active inclusion and non-discrimination Ageing is changing our societies in important and fundamental ways and it demands a comprehensive assessment and a reworking of our economic and social policy framework. Furthermore, if Europe is to become a society where people of all ages enjoy equal opportunities, a change of societal attitudes is required to ensure that older people s rights are not only protected but that they are also enhanced. Discrimination on the base of age still hinders many older people. With population ageing and more varied flows of migration, European societies are becoming more open, diverse and complex and all forms of age discrimination should be banned. Discrimination experienced on the grounds of age has an impact that goes beyond the individual. Evidence has demonstrated that it creates significant costs for society as a whole such as in terms of lost productivity of older workers and in the long-term costs of health care of those excluded from economic activity. The issues at stake range beyond those such as pensions and health care expenditure, older worker employment rates and old-age dependency ratios. While these are important areas for consideration - and key areas on which AGE lobbies - the necessary qualitative changes to the economic, social, cultural and political structures of society deserve equal attention. Promoting social inclusion among all older people should encompass the following elements: social relationships, civic activities, access to basic services, and neighbourhood inclusion. A combination of actions - including legislation, activities to promote cultural changes and societal attitudes, and service provision - are required over a sustained period of time to promote active inclusion and non-discrimination. Investing in mobility and successful integration Sustained immigration flows are seen as necessary for Europe to meet the challenges of an ageing and shrinking working-age population. These flows will probably be more varied than traditional immigration patterns and European societies will become more open, diverse and complex. Older migrant women are at particular risk of poverty and social exclusion and active measures must be taken to facilitate their inclusion in society. In particular, special policies are needed for migrant older women from some ethnic minority groups - including the Roma community - to combat the multiple-discrimination they face in old age. AGE believes there is also a particular need to address the issue of migrant women employed in the black economy. 11
Investing in civic participation, culture and dialogue Older people make a useful contribution to society and are capable of a far greater involvement in all areas of societal and community life. They have a valuable contribution to make to all kinds of civic, voluntary and community involvement. This promotes their social inclusion and provides them with opportunities to contribute their accumulated knowledge, wisdom and experience to the societies they live in. There is a need to promote an interactive solidarity between the generations. Older people have a vital role to play in enriching intergenerational links. They constitute an invaluable resource to the communities in which they live and to society as a whole. They comprise an increasingly large societal group whose participation in society should be promoted. Conclusions AGE believes that there is a need for a greater recognition and understanding of the impact of European policies on older people who are a large and rapidly growing section of the population. Given the increasing number of policies addressed at EU level which are of direct interest and relevance to them, organised groups of senior citizens and organisations working with older people must have greater opportunities to become actively involved in these important debates to advance their rights and interests. Their direct involvement in the policy making process - such as this current consultation process - will help develop stronger public support for the reforms needed to promote equal opportunities for all and to modernise our social protection systems across the EU to ensure their adequacy and efficiency in the long term and for future generations. Intergenerational solidarity must become a horizontal objective of the renewed Social Agenda and bi-annual cycle on demography AGE welcomes the Slovene Presidency s decision to initiate a shift in policy development based on intergenerational solidarity. A European Day on Intergenerational Solidarity and a biannual event during the light years of the bi-annual cycle on demography which takes this theme as its focus would play an important part in raising awareness of the need for such solidarity and increased equity between the generations and for realising policy change towards meeting these objectives. Intergenerational solidarity must become a horizontal objective of the renewed Social Agenda and Lisbon Strategy. Member States must be asked to report back on what they do to promote policies which support greater solidarity between generations in the framework of their National Reform Programmes and National Reports on Strategies for Social protection and Social Inclusion. This is in our view the only way to ensure that a new holistic approach will be adopted as recommended by the Commission in its Communication in 2006 on The demographic future of Europe - from challenge to opportunity (COM (2006) 571). 12
Giving older people a voice Older people need to be empowered to voice their concerns in EU, national and local debates through their representative organisations. In close consultation with its member organisations, AGE will seek to influence the EU bi-annual cycle on demographic change by suggesting issues to be tackled such as intergenerational solidarity, the challenges faced by urban versus rural areas, the complementary role of civil society and local authorities in meeting the needs and expectations of our ageing populations, the positive contribution and limits of new technologies in helping older people remain at work, participate actively in their communities and live independently in very old age. Influencing the renewed Social Agenda Building on this response to the Social Reality Stocktaking consultation, AGE will seek to influence the future priorities of the Social Agenda to ensure that older people s needs and concerns are mainstreamed in its objectives. AGE will need to further develop its citizen friendly communication tools to disseminate information about EU social policies and retrieve feedback from its wide membership. AGE will also seek to build the capacity of its members to use the renewed Social Agenda as a lobbying tool to influence policy change at national, regional and local levels. Recommendations for actions at the EU level AGE calls for a new approach to mainstreaming intergenerational solidarity in the renewed Social Agenda and calls on the Commission to promote a new vision on mainstreaming solidarity between the generations. AGE also calls for a horizontal directive on intergenerational solidarity as a tool to achieve the EU sustainable development objectives. During the light years of the bi-annual cycle on demography, a European event should be organised on intergenerational solidarity to promote exchange of good practice and mutual learning. Recommendations for action in the Member States Policy makers in the Member States should mainstream intergenerational solidarity in all relevant policies. AGE believes that Member States must commit themselves to giving a higher priority in their National Reform Programmes to achieving the commonly agreed Lisbon objectives, including the facilitation of greater solidarity between generations and social cohesion. The National Reform Programmes should include both these elements. In addition, AGE calls for a question to be included in the National Reports on Strategies for Social Protection and Social Inclusion on the streamlining of 13
intergenerational cooperation into social protection and social inclusion policies. As a key European stakeholder on ageing, promoting the interests of a large and growing section of Europe s populations, AGE welcomed the opportunity to respond to this consultation on social reality in Europe and looks forward to making its contribution to all related discussions and debates on this issue. We look forward with considerable interest to learning about the outcome of the deliberations on the renewed Social Agenda and to taking an active role in any initiatives to promote greater solidarity between the generations. AGE welcomes the Commission s proposal to hold Social Forums and hopes to be able to make an active contribution to these debates in the near future. * * * * * * * * 14
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