With a high 33 per cent of people over 60 years of age living in poverty, Australia ranks 94th, ahead of only South Korea and Venezuela, for the worst rate of old-age poverty in the Global AgeWatch Index 2015.
While we might congratulate ourselves for some progress we’ve made in some policy areas toward ensuring Australia is a great place for older people, this week’s news on the Global AgeWatch Index certainly takes a bit of wind out of our sails.
This is the third annual Global AgeWatch Index – published by HelpAge International – a global network of organisations advocating for the rights of older people everywhere in the world.
Drawing on data from the United Nations Department of Economic and Social Affairs, the World Bank, the World Health Organisation, the International Labour Organisation, UNESCO and the Gallup World Poll, the Global AgeWatch Index ranks 96 countries across the world according to the social and economic wellbeing of older people*.
The argument this research advances is that, when governments invest in their ageing populations, society as a whole gains.
Australia’s ranking drops
Last year, Australia ranked 13th among the 96 nations but this year our score has dropped to 17th. The top ten countries are headed by Switzerland at number one, while Canada ranks five and the US ranks nine. Japan comes in at eight. [Scroll to bottom of article for a comparative graph.]
As COTA Australia’s CEO, Ian Yates points out, Australia is substantially outranked by the Scandinavian countries (Norway and Sweden in 2nd and 3rd place respectively, followed by Germany in fourth place), most of western Europe, Canada and New Zealand (12th) and he says this reflects a continued lack of priority in addressing the needs and opportunities of our ageing population.
Yates said the release of this index each year provides a great indication of how Australia is faring compared to the rest of the world in our treatment of older people.
“Regrettably, the news is not encouraging,” he said.
Poverty rate over 60 is high
According to this year’s report, the poverty rate among people aged 60 and over in Australia is a high 33 per cent [we ranked 94th, ahead of only South Korea and Venezuela, for the worst rate of old-age poverty and 94th again for relative welfare, a figure COTA says reflects weaknesses in Australia’s retirement income system and continuing high unemployment among older people.
“Unfortunately factors like age discrimination make it a challenge for people over 50 to re-enter the workforce and far too many become long term unemployed and then drop out of job search altogether,” Yates said.
“Australia’s 17th ranking should be a wakeup call to governments that we urgently need a comprehensive ageing strategy and a coordinated plan for our ageing population across national and state governments.”
Poor outlook for mature employment
“Although our ranking of 62nd on income security is not a fair reflection, our low performance in the income security category underlines the need for reform of our retirement income system and the Newstart allowance; and emphasizes the austerity and tight targeting of our pension system.
Mr Yates has called for an urgent increase in the Newstart allowance, saying that the fact that many older Australians are stuck for years on the ‘paltry Newstart allowance’ before they are eligible for the age pension is also a significant contributor to poverty among older people.
“Too many older Australians spend years on Newstart Allowance, sliding deeper into poverty each year. The rate of the Newstart Allowance is inadequate for anyone to live on and needs to be increased urgently.
Older women at risk everywhere
The report also highlights issues related to older women and how poorly they are faring across the world.
Low levels of superannuation among older women in Australia – in part due to broken career paths to take on caring roles – has seen older women becoming homeless in increasing numbers.
Age friendly infrastructure is another issue on which we could do better. In particular in relation to public transport.
“…we should be seeing older people as a resource, and spending on them as an investment. “For example, if you spend right in health promotion and illness prevention, and the pension is sufficient, you actually save money in the long term in acute healthcare and aged care.”
You reap what you sow
The argument that this research advances is that, when governments invest in their ageing populations, society as a whole gains.
The countries that are performing best in the index have policies that support older people’s well-being and autonomy. The Scandinavian countries, for example, have universal pensions, flexible employment opportunities, lifelong learning and good healthcare.
But this approach isn’t unique to high-income countries. Chile (21), Argentina (31) and Mauritius (42) are adopting similar policies. In the Czech Republic (22), Latvia (35) and Estonia (23), governments have invested in training and education for older people to encourage greater workforce participation.
Ian Yates said we should be seeing older people as a resource, and spending on them as an investment. “For example, if you spend right in health promotion and illness prevention, and the pension is sufficient, you actually save money in the long term in acute healthcare and aged care.”
He said the research points to the need for a coordinated strategy on ageing across all portfolios and jurisdictions in Australia.
”A prosperous country like ours can do much better in supporting both young and mature age unemployed,” he said.
“Australia’s 17th ranking should be a wakeup call to governments that we urgently need a comprehensive ageing strategy and a coordinated plan for our ageing population across national and state governments.”
And it is difficult not to agree.
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* Rankings are based on 13 indicators across four categories:
- Income security – including indicators such as poverty rates among older people, pensions and GDP per capita;
- Health status – including life expectancy and psychological well-being;
- Capability – including older people’s employment levels and educational statuses;
- Enabling environment – meaning the safety, ‘civic freedom’, access to public transport and the social connections that elderly people in that population are able to enjoy.
You can download the full report right by clicking on this link.
To see some excellent interactive charts, click on this link to the in-depth Sydney Morning Herald article.
