The Financial Needs of Aging Societies

The acceleration of ageing is an economic and social challenge. On the one hand, the worsening dependency ratio challenges the sustainability of the pension system. On the other hand, the increase in needs linked to the autonomy and health of the elderly is undermining the balance of the healthcare system. We therefore need to adapt our model for financing and caring for dependency. The individualized approach, via insurance or savings, eases the burden on public finances and empowers individuals. But it is also a source of inequality, since not all individuals can insure themselves at market rates, and of uncertainty, since the return on capital also depends on the demographic and economic context. What's more, family carers often receive little support. Public funding limits some of these risks, but creates other inequalities between generations. Where do we draw the line between individual responsibility and national solidarity? How can we diversify protection schemes to compensate for the inadequacy of current solutions? Finally, rethinking our relationship with ageing, by promoting the social role of senior citizens, would enable us to develop the social economy, which offers alternative solutions to dependency.