“Affordability of long-term care systems in times of rapid population ageing”

“Affordability of long-term care systems in times of rapid population ageing,” by Satoshi Araki, Jacek Barszczewski, Karolin Killmeier, and Ana Llena-Nozal, VoxEU

“Rapid population ageing is increasing the pressure on public finances to provide adequate support for long-term care recipients. This column compares the impact of diverse social protection measures across 32 OECD and EU countries on poverty rates and out-of-pocket expenses among older adults with care needs. The analysis reveals substantial room for improvement and reforms, with existing systems often unaffordable and badly targeted. The promotion of healthy ageing, proactive use of new technologies to elevate care sector productivity, revision of eligibility rules to enable more targeted and inclusive coverage, diversification of funding sources, and optimisation of income-testing are all viable policy options.”

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

Just as the U.S. was caught flat footed with few kindergartens five years after the oncoming baby boom made their need obvious, the world is totally unprepared for the onslaught of geriatric boomers. Tax-based socialized LTC systems are the most at risk as their debt-ridden economies slip further into insolvency. Systems with vestiges of capitalist free markets will fare better if they build on that foundation instead of slipping ever deeper into state dependency.