Why would an organisation that is set up to create social change for an ageing population be concerned with the bottom line of businesses, and their employment policies?

Shouldn't the Bermuda Council on Ageing be focused on the needs of seniors?

The simple answer is that an ageing population affects us all, every man, woman, and child, and one of the most efficient ways to start thinking and acting on solutions for the entire population is to address ageing through the workplace. Work is the pivot around which we organise our families, our society, and our economy, and in the developed world the workplace is ageing.

An extreme example is the industrial nation of Japan, where their birth rate is unbelievably low at 1.1 births per woman, their people are living into their nineties and hundreds, and immigration is virtually non-existent. Japan is facing a crisis: caring for the growing number of elderly, and filling the jobs left vacant by retirees.

Another country that recognises the ageing of their population is Australia, and their Business, Work & Ageing Institute clearly states that "understanding just what an ageing population will mean for business can be complex and the immediate relevance for business may be ambiguous.".

The same can be said for the individual-the impact of an ageing population on our social and economic well-being is complex and ambiguous. It is not until we face retirement, loss of income and health benefits, and loss of status in a society that reveres youth and derides age, that true understanding is achieved.

In the meantime, there are two powerful forces developing within an ageing population: the business of ageing, and the ageing of business.

The business of ageing

There are tremendous entrepreneurial opportunities for those willing to meet the demands of an ageing population, especially as retirees convert their life savings into spending on leisure activities and health services. Indeed, many retirees see retirement as an opportunity to fulfil lifelong dreams to work in a completely different field, work part or flexi-time, or open their own businesses.

The ageing of business

Some companies in Bermuda, especially those in technology and the international sector, tend to have younger employees, though this does not give them immunity from the global talent shortage. Older workers are looking at their retirement options and Baby Boomers (those born 1946-1964) are beginning to exit the workforce.

The simple supply/demand equation results in ever higher costs of employment – the more applicants for a job, the lower the cost; the fewer applicants, the higher the cost.

And in Bermuda we have a low birth rate combined with a scarcity of qualified young people coming through the education system and entering the workforce. By extending the working life of older Bermudians, and re-hiring those who have already retired, we can create a win-win situation for all concerned.

First, from the employers' perspective, by including older workers in the employment pool we create a greater supply, thus decreasing the employment cost per worker. Also, the combined knowledge, skill, and work ethic of the older worker is an added bonus-what the older worker loses in speed he or she makes up in skills acquired over a lifetime that apply to problem-solving, customer relations, and delivery of service.

Second, from the employees' perspective, older workers gain job security, income security, health insurance, larger pension and retirement funds, social interaction, mental health, and self-respect.

Last, but not least, extending employment should also relieve the tax burden on everyone, employers and employees alike, as more people pay into the system for a longer period of time.

The ageing of a population brings risks and benefits. We need to make it our business to understand the complexity, and deal with the ambiguity.

We also need to face the challenges that the ageing of business brings while embracing the opportunities presented in the business of ageing.

Marian Sherratt is Executive Director, Bermuda Council on Ageing. She writes on issues concerning ageing each fortnight in The Royal Gazette. Send email responses to info[at]bdaca.org.