Global approaches to aged care

Aged care has been a hot topic in Australia over recent years – and with an aging population, demand on the sector is only going to grow.

Aged care has been a hot topic in Australia over recent years – and with an aging population, demand on the sector is only going to grow. So, how does our approach to aged care differ from that overseas, and what could the future hold here?

The topic of aged care is one that’s fraught with an array of differing emotions. For many of us, we first negotiate grandparents’ transition into care, then parents’, then face the sobering prospect of how we spend our own final years.

Here in Australia, aged care has received significant amounts of scrutiny and attention over recent years. Exposés revealed a systemically flawed approach to aged care, and the subsequent Royal Commission into Aged Care Quality and Safety made 148 recommendations to improve the quality of care we provide to the elderly in this country.[1]

Of course, aged care doesn’t come cheaply. Aged care – both in-home and residential, cost the Australian government $23.6bn in 2020/21,[2] and by 2025/26 that figure is estimated to grow to $35.8bn.[3]

With baby boomers now entering their retirement years and the number of people over 70 projected to increase from 3.239m in 2023 to 4.473m in 2033.[4], demand and cost for quality options are only going to rise.

So, with aged care in the spotlight, we look at three different approaches from around the world to the care of elders.

Italy: elderly stay at home

In Italy, only two per cent of the country’s elderly population live in aged care facilities.[5] Culturally, older family members are always looked after by their family, with authorities only intervening if an elderly person has no one to look after them. 

Germany: cohabitation and multigenerational facilities

In Germany, an initiative introduced a decade ago enables the elderly to live together in community apartments, with kitchens and living rooms enabling people to live as normal, outside of institutional care. By cohabiting, the elderly benefit from the interaction and companionship needed to reduce the risk of loneliness, without placing them into full-time care.[6]

Multigenerational housing is also popular in Germany, often comprising kindergartens and social centres where the community can drop in, as well as housing for the elderly. Residents can volunteer to read, play and sing with children, helping provide purpose and meaning.[7] 

Asia: societal changes force aged care shifts

Traditionally, Asian cultures have placed great weight on children supporting their parents in old age – however, with smaller families, higher rates of divorce and fewer marriages, things are changing, forcing countries to explore new ways of caring for their elderly.

In Singapore, for example, integrated health and social care systems are being developed to enable older people to ‘age in place’ – which lessens the required government spending on institutional facilities, and helps people enjoy a higher quality of life, too.[8] 

Creating the future of aged care

Across the world, it’s clear that the demands on and for aged care are changing, and new thinking will help create the future gold standard.

The care given to older people with dementia here in Australia was highlighted in the Royal Commission, with facilities being deemed ‘substandard’,[9] while research in East and South-East Asia also found a lack of positive care environments for people living with dementia.[10]  In Tasmania, a new village for people living with dementia is leading the way – and could be the face of aged care to come.

The village called Korongee in a suburb of Hobart, mirrors what is, for many, a typical experience of living in a community. Houses, in which eight people live, are situated at the end of quiet cul-de-sacs, while the surrounding gardens and village grounds all reflect dementia design principles.

The village itself contains a cafe, a community centre, a salon, a wellness centre and a general store, all of which promote independence and authentic connection while ensuring the requisite care is on hand.

‘Lifestyle companions’ encourage and support the residents in daily tasks, promoting the independence that is so critical, and this could be the blueprint for a wider change in how we look after people as they age.

Top-ranked countries to grow old in

So, what are the best countries to grow old in? And where does Australia rank?
Based on a 2023 report using a combination of factors – life expectancy, health care index score, World Happiness Report Score and Safety Index Score – the best place to grow old is… Switzerland.[11]

Switzerland is closely followed by Finland, Denmark, the Netherlands, Taiwan, Japan, Austria and Iceland.

In case you’re wondering, Australia came in 16th on the list, while New Zealand is in 23rd place.

Given 90 countries were analysed, it seems we’re in a pretty good place – with room for improvement.

Important Information

This publication is prepared by Actuate Alliance Services Pty Ltd (ABN 40 083 233 925, AFSL 240959) (‘Actuate’), a member of the Insignia Financial group of companies (‘Insignia Financial Group’). The information in this publication is general only and has not been tailored to individual circumstances. Before acting on this publication, you should assess your own circumstances or seek personal advice from a licensed financial adviser. This publication is current as at the date of issue but may be subject to change or be superseded by future publications. In some cases, the information has been provided to us by third parties. While it is believed that the information is accurate and reliable, the accuracy of that information is not guaranteed in any way. Past performance is not a reliable indicator of future performance, and it should not be relied on for any investment decision. Whilst care has been taken in preparing the content, no liability is accepted by any member of the Insignia Financial group, nor their agents or employees for any errors or omissions in this publication, and/or losses or liabilities arising from any reliance on this document. This publication is not available for distribution outside Australia and may not be passed on to any third person without the prior written consent of Actuate.

 

[1] https://agedcare.royalcommission.gov.au/publications/final-report-list-recommendations

[2] https://www.health.gov.au/topics/aged-care/about-aged-care/how-much-does-aged-care-cost

[3] https://www.news.com.au/finance/economy/federal-budget/cost-of-aged-care-rises-to-create-budget-blowout/news-story/56a2c17bfbbc5e49ba298a41261c9557

[4] https://population.gov.au/data-and-forecasts/dashboards/national-projections

[5] https://academic.oup.com/gerontologist/article/56/3/383/2605648

[6] https://www.pflegestuetzpunkteberlin.de/en/thema/accommodation-for-the-elderly/

[7] https://www.centreforpublicimpact.org/case-study/mehrgenerationenhauser-germany

[8] https://link.springer.com/chapter/10.1007/978-94-017-9331-5_5

[9] https://agedcare.royalcommission.gov.au/sites/default/files/2021-03/final-report-executive-summary.pdf

[10] https://ro.uow.edu.au/smhpapers/5046/

[11] ​​https://lottie.org/care-guides/which-country-has-the-best-elderly-care/

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