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Latest NewsHR strategyPay & benefitsRecruitment & retentionWellbeing

Healthcare and pension pressures on employers rise with ageing workforce

by Louisa Peacock 24 Sep 2008
by Louisa Peacock 24 Sep 2008

Pressure on employers to fund and facilitate healthcare and pensions schemes will intensify as the government struggles with the rising costs of an ageing workforce, a new survey has claimed.

A report by think tank the World Economic Forum (WEF), The Future of Pensions and Healthcare in a Rapidly Ageing World â€“ Scenarios to 2030, published yesterday, claimed the increasing ageing workforce worldwide will put severe strain on global public pensions and healthcare systems. It predicted the private sector will be expected to ‘come to the rescue’ and cough up cash to ensure employees are able to receive quality healthcare and can retire with good pension pots.

The United Nations has previously warned that globally the percentage of people aged 60 years or older will double between 2007 and 2050. By 2050, one-third of the total population in developed countries will be 60 years or older, while in less-developed countries one-fifth will be over 60.

Klaus Schwab, executive chairman of the WEF, said: “The ageing of our societies is one of the most profound challenges the world is facing today. New solutions are required to afford adequate and accessible retirement and healthcare services for the world’s ageing population in 2030 and beyond.”

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Outsourcing and consulting firm Mercer, who worked on the WEF report, urged employers to include a demographics assessment within their workforce planning to identify and avoid potential workforce skills gaps and bottlenecks in key careers.

Employers should consider several steps to prepare for an ageing workforce, Mercer said, including:

  • re-hiring retirees for periods of peak activity
  • establishing wellness programs targeted at mature employees
  • considering phased retirement programmes
  • developing talent pools for crucial positions
  • implementing retention plans focused on identified at-risk groups.

Louisa Peacock

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