As Asia’s aging population moves out of the workforce and into retirement, the continent’s governments are scrambling to develop policies to address the ensuing economic pressures.

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A report from the World Bank released at the end of 2015 warns that the aging population will pose many risks to the economies of some East Asian countries. According to the report, by 2040 the countries of Korea, Thailand, China, and most notably Japan, are on the path to losing as much as 15% of their working-age population.

Much is at stake here. Asia’s elderly population will demand higher public spending. Without well-coordinated structural reforms from the side of governments, pension spending in the region will increase by at least 20% by 2070. The regional vice president of the World Bank’s East Asia and Pacific Region, Axel van Trotsenburg, recommended that policymakers “consider comprehensive, proactive policies that will increase labor force participation, encourage healthy behaviors, boost productivity, reform social security, and ensure that public services are affordable.”

The pressure is not only being felt by governments, but also by private corporations as they will be one of the main stakeholders affected. Julio Portalatin, the CEO of Mercer, spoke out and shared his thoughts on the subject. Governments would have to extend benefits for older workers in a “fiscally responsible” manner, according to Portalatin. One of his recommendations is to raise the retirement age so that an aging population does not affect the workforce too much. Other options include encouraging more women to join the workforce and shifting the healthcare focus from hospital care to primary care.