Asia boast of largest population block in the world with two most populous country China and India. Though it provides the biggest market for the world, it is equally becoming one of the oldest population in the world. The overall elderly population of Asia is going to be 923 million by 2050.

To cater to this aged population the question arises whether the Government of Asian countries are prepared for the impact it is going to face socially and economically.

According to studies conducted by Asian Development Bank (ADB) rapidly shifting demographics – particularly declining birth rates and increasing life expectancies – will increasingly shape the economic direction of developing countries in Asia. The favorable demographics that have driven high economic growth in the region are likely to reverse.

The large population of Asia acted as catalyst to the economic growth to the Asian region needs to find a sustainable means to maintain its economy as well as look for means and ways to take care of its ageing population.

The twin challenges faced by the Governments are how to maintain growth as well provide affordable and sustainable income support for the elderly. ADB research found that in the People’s Republic of China, more than half the population lives in rural areas but only about 10% are covered by rural pension schemes. In India, the pension system for civil servants and salaried employees in the private sector covers only about 14% of the workforce. Most of India’s workers are employed in the informal sector and are excluded from the benefits of a regulated retirement income system.

One of the upcoming socio-economic issues of Asia will arise due to its rapidly ageing population whereas in comparison to industrialised countries of the world most Asian countries lacks a comprehensive pension system. With rising elderly population the Government of the future will be ill prepared as retirees to workers will be on the rise.

It is time to look for ways and means to look after the elderly population, provide sustainable old age socio-economic benefits as well maintain economic growth. The balancing act in the form of reforms in pension system shall avoid the region from being stuck in a situation where the priorities over responsibilities do not get into a confusion state.