Promoting Active Ageing in Lithuania

Abstract

Lithuania is ageing rapidly. The ratio of the old-age population (65 years and older) to the population aged 15-64 years will almost double from 32 individuals aged 65 and over for 100 persons in 2022 to nearly 60 by 2050, (Figure 1.1, Panel A). Rapid ageing coupled with high emigration will dramatically shrink the labour force over the next three decades with Lithuania facing the second largest drop in its working-age population in the EU27 following Latvia (Figure 1.1, Panel C). The workforce is also expected to age faster. The share of older workers (55-64) in the working population is expected to rise from 23% in 2022 to 26% in 2050, compared to 22% in the EU27 (Figure 1.1, Panel B). The government projects ageing-related fiscal costs, including for pensions, health and long-term care, to rise from 15.3% of GDP in 2019 to 17.6% in 2060 (OECD, 2022[1]). These trends will test the Lithuanian public administration to deliver public policies and services and to allocate public resources in the face of a major demographic change. The relative weight of older citizens will increase among voters, and so will their demand for resources and public services. At times of growing intergenerational divides in societies and global challenges such as climate change and digitalisation, creating conditions and opportunities for older people to participate in society, public and political life, the labour market, and strengthening intergenerational relations will be crucial.Therefore, urgent action is needed in various policy domains captured under the Active Ageing principle including i) sustaining employability and access to lifelong learning at older ages, ii) enhancing their social inclusion, and iii) increasing their participation in public and political life to maintain growth, high living standards, and social cohesion in the Lithuanian society.The European Commission defines active ageing as "helping people stay in charge of their own lives for as long as possible as they age and, where possible, to contribute to the economy and society" (Eurostat, 2020[2]). The Active Ageing Index (AAI) developed by the European Commission (DG EMPL) and UNECE is a tool to assess older people's ability to control their own lives and (capacities for) participation in both society and the economy (UNECE/European Commission, 2019[3]). By covering various areas of the lives of older people, the AAI aims to capture this complexity. Based on the overall AAI, Lithuania ranks only 19 th in the European Union (Figure 1.2).