Workers are staying in the labour market longer, making valuable contributions in the process


as well as a rise in physical injuries such as falls that result from frailty. While broad figures tell an important, albeit faceless,


story, there’s clearly an element of sensitivity surrounding the effect of an ageing population because, above all, we’re talking about real people. The ‘baby boomers’, for example, grew up in an era of noticeable cultural and social change and it is perhaps in a cultural context that we most associate this demographic. Yet, as this group of people – recognised as being born between 1946 and 1964 - reach (or in some cases have reached) retirement age, this section of society becomes significant when assessing the link and challenges between healthcare and an ageing population. An ageing population is quite clearly a leading factor in


the necessity of the healthcare sector in the UK – both public and private – to evolve (more detail can be found on the ways and means to achieve this in the Westfield Health interview on p28) but it’s worth pointing out that there are other significant considerations, such as the impact on health and wellbeing which can be attributed to people of all ages. Alcohol and smoking-related illness, for example, costs the NHS on average over £5.5bn per year; definitely not age-specific issues. What’s clear is that an increase in demand for healthcare


creates an inextricable link with funding and expenditure and here there is a demonstrable link to an ageing population. More than two-fifths of national health spending in the


UK is devoted to people over 65, according to estimates produced for The Guardian newspaper. The Guardian goes on to state that: “the data shows that


an 85-year-old man costs the NHS about seven times more on average than a man in his late 30s. Health spending per person steeply increases after the age of 50, with people aged 85 and over costing the NHS an average of £7,000 a year. Spending on health services across all age groups is £2,069, according to Treasury analysis”. When you factor in social care – something that was


covered in greater detail in the December/January edition of Business Network – there is clearly a lot more work to be done in order to first deal with, and then overcome, the challenges of increased demand and budget shortfalls


40 business network May 2017


when it comes to the UK healthcare sector’s ability to adequately manage the demands of an ageing population. Yet, every challenge presents an opportunity. It’s worth


remembering that the fact people are living longer is, in no small part, an acknowledgement of the huge strides taken in medicine and healthcare; it’s a great triumph to be celebrated. On the whole, people are staying healthier for longer and


consequently contributing to society in a multitude of ways, and in greater numbers, than we have seen previously. So could there be economic benefits down the line that


could potentially offset, or at least reduce, the pressure on resources and finances relating to the healthcare sector? Think-tank The King’s Fund in its report Making our


health and care systems fit for an ageing population argues that: “This success story for society and for modern medicine has utterly transformed our health and care needs. Many people stay healthy, happy and independent well into old age, and there is mounting evidence that tomorrow’s older people will be more active and independent than today’s (Spijker and MacInnes 2013)”. It’s a perspective shared by the International Institute for


Applied Systems Analysis (IIASA), which conducts policy- oriented research in to issues too large or too complex to be solved by a single country or academic discipline. In its study, which took place in Germany and was published in the journal PLOS ONE, it comments that: “with growing age, people will also remain healthier for longer. The results project that the average German man in 2050 will spend 80% of his lifetime in good health, compared to 63% today”. The already-quoted Political challenges relating to an


ageing population: Key issues for the 2015 Parliament report goes further by suggesting that: “a healthier old-age population would also allow greater numbers to remain in the labour market for longer, thereby mitigating the impact of an ageing population on the dependency ratio. This in turn could increase tax receipts and limit public expenditure growth”. The Women's Royal Voluntary Service, a volunteer


charity organisation, offers some tangibles, estimating that the over-65s make a net contribution to the UK economy of £40bn through tax payments, spending power, donations to charities and volunteering.


‘A healthier old- age population would also allow greater numbers to remain in the labour market for longer, thereby mitigating the impact of an ageing population on the dependency ratio’


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