<\/p>\n
You can also listen to this podcast on iono.fm here.<\/p>\n
SIMON BROWN: I\u2019m chatting with Barry Kaganson, CEO of Auria Senior Living. Barry, appreciate the time.<\/p>\n
One of the often made comments about South Africa is how we have a young population. That is a true statement, but the other side of the statement is that there are still ageing South Africans. We still have a population that ultimately is ageing.<\/p>\n
In a recent piece you put out you talk around the fact that as a country we need to start planning for that ageing population. We can\u2019t just sit back and let it happen. We need to be smart about it.<\/p>\n
BARRY KAGANSON: Yes, absolutely, Simon. That\u2019s correct. Currently the projection is that about one in six South Africans will be over the age of 60 by 2050.<\/p>\n
But I think what\u2019s even more important than that is \u2013 and this is the same in South Africa as it is globally \u2013 that the amount of all the adults over the age of 80 is expected to triple by 2050, in the next 24 years, which has a major impact across various aspects of society.<\/p>\n
Read:
The terrifying math of funding a 25-year retirement
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SIMON BROWN: Agreed. Frankly, across practically all aspects of society. Some of it is just how cities are operating, but I imagine particularly healthcare systems prepared for people into their 60s, to your point now into their 70s and 80s \u2013 whether it be public or private.<\/p>\n
BARRY KAGANSON: Correct. A generally accepted statistic is that approximately 30-40% of people over the age of 80 need assistance with two or more activities of daily living. Those can be hygiene, meals, medication management, ambulation\u00a0\u2013 which is getting around \u2013 et cetera.<\/p>\n
So if you consider that in a relatively short space of time the number of people needing that will triple, I guess you can kind of appreciate the scale of the problem.<\/p>\n
As you say, it cuts across all demographics because people are people, no matter their LSM [living standards measure], which is their affordability of procuring these services.<\/p>\n
Read:
Government old age grant: Can you apply?
Why the South African middle class keeps starting over<\/p>\n
So that is something that needs to be looked at from all aspects, including by government. I know government in South Africa has a number of priorities that require attention and funds, but this is certainly one that is also going to compete with whatever else the country needs, quite frankly.<\/p>\n
SIMON BROWN: That\u2019s a good point. This is a healthcare issue, but it\u2019s a lot more than just a healthcare issue. It is also going to be an economic issue, an infrastructure issue. And in both cases we\u2019re looking at municipalities, at provincial and national government to come to their help to a fair degree.<\/p>\n
Regardless of your LSM, some of this stuff needs to be done at governmental level.<\/p>\n
BARRY KAGANSON: Absolutely. The thing about care for older people is that it takes one of two things. It takes money or it takes time. \u2018Time\u2019 would be if it\u2019s a family caregiver situation. But that time also has a cost, because it means that the person doing the caregiving has fewer hours in the day to be productive \u2013 and by \u2018productive\u2019 I mean earning an income.<\/p>\n
Read: Your medical aid increases at 9% a year \u2013 your retirement fund probably doesn\u2019t<\/p>\n
So there\u2019s an economic impact to tying up people\u2019s time in caregiving for families \u2013 that\u2019s the one aspect.<\/p>\n
The other aspect is that they\u2019re not always qualified to be able to give the care that is needed. So, as you say, it cuts across healthcare and there are a whole lot of economic implications as well.<\/p>\n
SIMON BROWN: Also, when we think about our retirement, obviously initially we think about the saving; then we start to think, okay, it\u2019s the spending. We get the sense that, yes, medical\u2019s going to cost us more in retirement \u2013 and that\u2019s a true statement.<\/p>\n
But it\u2019s a lot more than that. The key one is where we\u2019re going to live, because we\u2019re going to need places that have the support services that we can then afford.<\/p>\n
BARRY KAGANSON: Correct. Again that talks to the demographics. There\u2019s a range of affordability from almost nothing to quite a lot. I think the main benefit of living in a senior living community \u2013 I guess that\u2019s what you\u2019re talking about \u2013 is actually more than just the care and support.<\/p>\n
It\u2019s actually the social interaction, because that\u2019s actually one of the key determinants of healthy ageing and arresting the decline that comes with age, both physically and mentally.<\/p>\n
Read:
10 signs you\u2019re doing better in retirement than you think
Retirement healthcare costs rise \u2013 they don\u2019t take over
When is enough really enough?<\/p>\n
So, as you said, we need to think about the environment that people are living in that\u2019s going to be able to foster social interaction. Believe it or not, you can make new friends after 80. I see it all the time.<\/p>\n
People think that you can\u2019t and that you need to sit at home alone. That\u2019s absolutely not true and it has a detrimental impact on health, for sure.<\/p>\n
SIMON BROWN: That also then says to me that some of this is actually kind of soft touch \u2013 to your point around having companionship, friends, and the inability to get from A to B, whether that be just getting to a lounge or perhaps getting to a shopping centre.<\/p>\n
Some of this is, I want to say, easily solved. I don\u2019t mean \u2018easy\u2019 in that we can do it, it\u2019s easy in that maybe it doesn\u2019t need giant budgets and infrastructure changes.<\/p>\n
BARRY KAGANSON: Yes, it\u2019s a very good point. And I think certainly on the mobility side or the transport side, South Africa generally doesn\u2019t have a great public transport network around the country \u2013 and that would be something hugely beneficial to older people.<\/p>\n
It crosses all demographics. People aren\u2019t able to drive, or don\u2019t have a car \u2013 or have never been able to drive, have never owned a car, et cetera.<\/p>\n
Read:
Holistic retirement \u2013 Part 10: Golden years, golden rules
Credit crunch for the golden years
The psychological shift no one talks about when you retire<\/p>\n
It opens up the world, essentially, if you have a reliable and safe and accessible public transport system \u2013 which we certainly don\u2019t have in this country. That also contributes to the factor of isolation.<\/p>\n
SIMON BROWN: Yes, governments, municipalities \u2013 we can see where they fit in. But does business have a role here as well, where it can assist as we get an ageing population, a population living longer?<\/p>\n
BARRY KAGANSON: Yes. I think the senior living sector in South Africa is definitely growing in response to demand and in response to the ageing population, as it is everywhere in the world.<\/p>\n
But what happens \u2013 I\u2019m going to use New Zealand as the example.<\/p>\n
New Zealand has a number of private providers of aged care services and facilities, and what the government does is to contribute, on behalf of residents, on a financial need basis.<\/p>\n
So the lower end of the affordability [range] will be covered almost 100% by government. The upper end of the affordability, those who are able to pay, will have 0% funded by government because they should pay for themselves, because they have the funds.<\/p>\n
So I think there is a way to work with government and the private sector, but I do think that currently and realistically we are a fair long way away from that.<\/p>\n
Read: 70 is the new 65: Why people are retiring later<\/p>\n
SIMON BROWN: I think we are. To be clear, as I said, we\u2019re a young population. But like all populations the world over, we age, we get older. That is a stark reality.<\/p>\n
Read:
Auria Senior Living snapped up for R2.4bn by Growthpoint Healthcare
Working into your 70s is new norm in Japan that may spread to rest of world<\/p>\n
We\u2019ll leave it there. Barry Kaganson, CEO of Auria Senior Living, appreciate the time.<\/p>\n
#Preparing #SAs #infrastructure #economy #ageing #population<\/p>\n","protected":false},"excerpt":{"rendered":"
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