Page 143 - GHES-2-4

Global Health Economics and
Sustainability
Silver economy and long-term care

of social security systems due to the decrease in the 2021). Changes in the age distribution of populations are
contribution to social system revenues and the increase in observed in high-income countries (for example, in Japan,
payments for retirement and social services due to various the number of people over the age of 60 years comprises
reasons, such as unemployment, informal employment, 30% of the population); however, significant changes will
low wages, aging population, early retirement, economic also occur in low- and middle-income countries in the
instability, and migration. coming years. By 2050, many Organization for Economic
With regard to social services, an aging population can Co-operation and Development (OECD) countries are
cause significant changes in economies with the increased expected to be aging, increasing the demand for long-
demand for health services, nursing homes, and other term care services. Even Turkey, which has the youngest
social services. This situation may require governments population among OECD countries, is projected to have
to rethink social and health service budgets and policies. 17.6% of its population aged 65 years and over in 2050
The consumption habits of older individuals often differ. (Bal, 2016). Therefore, a sustainable method for financing
Difficulties in adapting to new technology and changing long-term care services must be established.
daily habits may also result in negative impacts on the Long-term care services are provided to people with
quality of life of elderly individuals. The health effects of reduced physical or cognitive capacity, including health
the silver economy include the risk of aging and chronic and social care activities, and people dependent on external
diseases, which may require healthcare systems to cope assistance to perform basic daily activities for an extended
with chronic diseases. Increased demand for health services period (Bal, 2016). In general, long-term care services
and healthcare costs may impose significant burdens are provided by professional caregivers, paid caregivers,
on health systems. Nonetheless, the aging population’s or family members (usually women) in the home of the
demand for health and social services may create new person receiving the service, in an institution providing
opportunities in these sectors, and economies may be daytime services to elderly adults, or in living spaces such
positively affected by this demographic change (Streicher as supervised nursing homes. The need for long-term
et al., 2022; Costa-Font & Vilaplana-Prieto, 2023; Spitzer care arises due to illness, disability, chronic diseases, or
& Reiter, 2024.). Therefore, governments must evaluate problems arising from old age, and the duration of the
their economies from a sustainability perspective within need for long-term care varies depending on the cause for
the aging framework and the needs that will develop due the same. As a natural consequence of aging, the demand
to aging and make investments in this field. The most for long-term services is increasing, and expenditures
decisive feature of the silver economy is the needs arising in this area are steadily rising, threatening the financial
from aging because of prolonged life expectancy. Aging sustainability of society as the number of elderly individuals
and the accompanying chronic diseases create the need who need professional medical care or support in activities
for long-term care, bringing healthcare to the forefront of daily living because of illness increases. Long-term care
in this respect. In fact literature stated that long-term care is labor-intensive, expensive under all circumstances, and
services are considered as an important sector in the care requires more dedication and professionalism than other
economy after child care/education (Ilkkaracan & Kim, care services with unique emotional aspects (Bal, 2016).
2019; Norouzi & Angel, 2023). In 2021, approximately $467.4 billion was spent on long-
term services and supports, representing 13.2% of the $3.6
The increase in life expectancy at birth (LEAB); the
slowdown in the fertility rate; social, cultural, economic, trillion spent on personal healthcare in U.S.(Congressional
and technological transformations; and developments in Research Service, 2023).
the field of health have led to an increase in the elderly Regarding financial sustainability, long-term care
population. Furthermore, health services provided to expenditures have become a priority policy issue in many
elderly individuals are more expensive than those provided countries with aging populations, such as the OECD
to younger individuals (Demirci et al., 2019). Due to the nations. Studies emphasize that the aging population
high incidence of chronic diseases in elderly adults, they will put pressure on the healthcare system and the social
benefit more from long-term care services. According security system (Aina et al., 2021; Cristea et al., 2020; Vlad
to the World Health Organization data, 1 out of every 6 & Mădălina, 2012). Moreover, solutions to be implemented
people in the world will be 60 years of age or older in 2030, through high premium taxes will put pressure on the
and the number of individuals aged 60 years and older economy. Research shows different and contradictory
is expected to double in 2050 (2.1 billion). Furthermore, results on this relationship, and how and why long-term
individuals aged 80 years and older are expected to triple care expenditures affect life expectancy remains unclear
between 2020 and 2050, reaching 426 million (WHO, (Spielauer, 2001). The ambiguity of the relationship

Volume 2 Issue 4 (2024) 2 https://doi.org/10.36922/ghes.3298