The population is aging, and birthrates are dropping. In the coming years, this disparity is expected to get even more pronounced. Many policy-makers are looking for ways to combat the economic strain that this change puts on society.

Milena Nikolova — a Brookings Institute fellow and research associate at Germany’s Institute for the Study of Labor — talks about possible ways to combat this issue.

From Brookings:

Encouraging older workers to remain longer in the labor force is often cited as the most viable solution to fiscal pressures and macroeconomic challenges related to population aging. Phased-in retirement entails a scheme whereby older workers could choose to work fewer hours yet remain longer in the labor force, including after they retire. And gradual retirement can be beneficial to societies, employers, and workers:

• First, phased-in retirement allows continuity in tax revenues and reduced expenditure on pensions, which holds particular importance for fiscal and macroeconomic stability;
• Second, older workers can be valuable to organizations and younger colleagues due to their knowledge and experience;
• And third, late-life work has positive healthand perceived well-being consequences for older employees.

[…]

In cases where individuals are unable to take advantage of phased-in retirement—due to health issues, family obligations, or skills mismatch—governments could promote and reward volunteering, care work, and artistic work among the elderly. Such unpaid activities improve the quality of the social fabric, help the well-being of those engaging in them, contribute to the economy, and reduce healthcare and welfare costs.

Volunteering is among the most important pro-social behaviors with many social and individual benefits. For example, about 25 percent of U.S. residents volunteer, providing 7.9 billion hours of service and contributing $184 billion of service. Additionally, late-life volunteers have lower rates of deteriorating mental and physical health and delayed mortality. Because of these benefits, national policies should seek to facilitate, reward, and adapt such opportunities for older individuals. And care work undertaken by older people—such as childcare, preparing meals, cleaning, and helping the elderly or disabled—should be recognized for its value and rewarded financially.

Further, providing incentives and encouraging the elderly to engage in creative work related to painting, music, or creative writing can also be beneficial to society and prevent social isolation. Governments can promote such activities by financing arts and crafts courses in social clubs or community centers for older participants.

The entire blog post is worth reading. You can find it here.