From a fiscal perspective, as long as the costs of public pensions, health care and nursing are covered by contributions from the working generation, and if the benefit levels for the elderly are not adjusted, ageing will lead to higher fiscal deficits.
Concerns about demographic changes were already raised in the late 1980s, but at that time it was only considered vaguely as an issue for the distant future. However, as our experience shows, ageing has huge implications. It is evident that the vibrant emerging economies in Asia will age in the not-too-distant future (Slide 11).