Nearly one quarter of the Bermuda population will be aged 65 or older within the next ten years, a report said yesterday.

Government statisticians predict the proportion of seniors will climb from 16.9 per cent in 2016 to 24.9 per cent in 2026. It would mean an increase of nearly 50 per cent from 10,755 to 15,825.

During the same time, the number of seniors for every 100 people of working age is expected to rocket from 24.7 to 39.9, with the realities of the trends meaning greater demand on pensions and healthcare.

Increasing the retirement age or removing it altogether, having more babies and trying to encourage young people to stay on the island through greater job opportunities were among proposals to tackle the issues.

However, one finance expert warned it could take “decades” to reverse the pattern. The figures were revealed in the Bermuda’s Population Projections 2016-26 Report from the Department of Statistics.

Government reform minister Lovitta Foggo said: “The report highlights some critical realities for Bermuda’s future population, and the Government is being proactive in finding solutions today, to ensure a better tomorrow for Bermudians.

“For our seniors, we continue to closely monitor the performance of our pension funds and are exploring the benefits of increasing the retirement age to 67.

“Similar reforms will be made to our social insurance scheme.

“Given the demographic shifts and the increase in non-communicable conditions, we know that health costs and the pressures on long-term care will continue to challenge us.”

Other highlights in the report include a drop in the total population from 63,791 to 63,680 over the period, a fall in the yearly birthrate from 9.3 per 1,000 people to 7.3, and a rise in the death rate from 7.6 per 1,000 people to 9.4.

John Wight, the Bermuda Chamber of Commerce president, said: “In the absence of taking any action to address Bermuda’s ageing population, this report highlights that by 2026 Bermuda will have fewer people than today.

“A drop in the general population is a concern; a stable or growing population is key to a healthy economy.”

He added: “The discussion in Bermuda needs to be one of how we grow our population, not do we need to grow our population?”

Nathan Kowalski, chief financial officer at Anchor Investment Management, said: “We do have a very high rate of ageing in our population base, so there’s going to be all kinds of social and economic impacts that have to be tackled in terms of housing, caregiving and the whole provision of healthcare.”

He added: “It’s not drastically unique to Bermuda but I think because we’re a small community we might see it a little bit more prominently.

“We’re not that big so we’re going to see this quite stark change in ageing.”

The report told how the search for “affordable care providers for seniors” could become more difficult than finding childcare. Ms Foggo said a home care policy has been developed to encourage people to “age at home where possible”, providing funds for eligible seniors to receive care from qualified caregivers.

Reflecting on housing needs for seniors, Ms Foggo said the Bermuda Housing Corporation, Age Concern and representatives from the health ministry are in talks about the ageing population and its needs.

She continued: “Talks continue to address the long-term needs of independent seniors, as well as assisted-care facilities for our valued seniors.

“The BHC has also partnered with the Bermuda Housing Trust in assisting with retrofitting some of their properties to better assist our seniors’ housing needs.”

The report states fewer births means “far-reaching consequences” for pension schemes such as the Government’s Contributory Pension Fund, as contributions by workers are generally paid out as benefits in the same year.

It said falling birthrates could make it difficult for employers to fill vacancies with young Bermudians, while the increasing number of senior dependents means the workforce will need to support more people.

The report states: “One possible option to address this would be to increase the mandatory retirement age of 65 in some industries or to eliminate it altogether as an earlier retirement age diminishes the labour pool.

“Aside from substantial immigration, another way to increase the labour supply immediately will be to bring more of the elderly into the workforce.”

Advances in medical technology and healthier lifestyle choices could help reduce the death rate, it suggested, while more births could come about through “pro-natalist policies” such as incentives to have children.

The report said improved employment options on the island could result in less emigration, and added: “More immigration can be achieved by a strengthening or diversifying economy that provides increased job opportunities.”

Yet Mr Kowalski warned: “Demographics are like a giant aircraft carrier, they do not turn on a dime.

“Even if you did have a whole batch of babies today, it won’t dramatically change the demographic projections, they take decades to revert or change.

“But any kind of push towards having younger Bermudians come back to Bermuda, having more jobs here for young people — that’s what we all want.”

The report also pointed out that shrinking numbers can have environmental benefits due to less strain on the island’s resources. A falling population can also lead to less demand for housing resulting in falling prices.

• Copies of the report can be downloaded at www.gov.bm. To read the report, click on the PDF under “Related Media”