The phenomenon of aging, with its complex implications for society and the economy, has been particularly intensive over the last 50-60 years and has been noticed with a delay. One should observe that, except about 8–10 advanced countries, the rest of the world is still not fully aware of it and, consequently, not properly adjusted to the new demographic reality of seniors representing about a third of the population.

The challenges of population ageing were first officially highlighted by the United Nations only in 1991, when a document entitled "Principles for Older Persons" was adopted. Not surprisingly, only 20 years later, the "Silver Economy Initiative" was adopted in the OECD, which introduced the concept of the silver economy and its challenges. What does the concept cover? It refers to the entire activity of seniors (over 65 years of age), as well as everything that covers their needs. As defined in Wikipedia1, it is a system of production, distribution, and consumption of goods and services intended primarily for the elderly for their living and health needs.

Now, the aging of society and the inverted demographic pyramid are being discussed more or less by everyone, but most people are still not aware that we have entered a period when the silver economy already accounts for 32% of global GDP and, in the period 2015-2023, rose from €3.7 trillion to €6.4 trillion. Also important to mention is the fact that the number of jobs performed by the seniors has reached 88 million, i.e., 38% of the world total. Today, the global silver economy represents, by GDP, the third largest economy in the world, behind the US and the PR of China.

However, the world is still very slow to adapt to these more than obvious changes. In public opinion, older people mostly still represent a group that primarily represents a burden and a cost for society. However, the actual data are completely different. In France, for example, only 6% of people over the age of 50 are economically dependent, but they contribute more than half to the growth of value added and 30% to the growth of productivity, and have most of their savings and deposits in banks. Without these, banks would not be able to finance the economy at the current level. The Silver Economy Forum also makes an important contribution to identifying the challenges and opportunities of the silver economy—the last meeting was held on October 15-16, 2024, in Berlin2.

The key problem is, of course, the deep-rooted practice of retirement at the age of 65 years, which contradicts a significantly longer life expectancy (for example, 22% of Slovenians are over 65). Already 6 years ago, a law was passed in Japan that leaves the decision to retire entirely to the person about to retire and to their employer. What the effects of this law are, we do not yet know with sufficient precision, but it has contributed to the length of average employment in the country.

Quite a few countries outside Europe are considering introducing such legislation, but for the time being, the retirement age is mostly increasing (Sweden, even 70 years, Great Britain, the USA, and Germany, 66 or 67 years). A number of countries, however, still maintain an age of around 60 years, which is completely unrealistic vis-à-vis the mathematics of sourcing the pension funds!

The main challenge is how countries regulate the situation of seniors who, for various reasons (certainly not only financial), remain active in the jobs where they worked until retirement or choose from the various options available to seniors in their countries. The claim that prolonged activity of seniors reduces the number of jobs available to the youngsters has been rejected by research.

Longer activity is, fortunately, a growing trend. In Finland, for example, the proportion of employed seniors rose by 23% in the decade 1997-2007, but not coincidentally, appropriate measures were taken. In New Zealand and Iceland, the share of seniors still in employment has risen significantly, while in Slovenia it remains at the level of 8-10% of retired seniors.

Seniors in Slovenia

The situation of seniors in Slovenia is not favorable, both in terms of their actual involvement in employment and in terms of contributing to society as an active person (according to a Eurobarometer survey, the share of positive responses in this regard was only 45% in Slovenia, 65% in the EU, and even 74% in Finland)3.

It is not surprising that, according to a recent ZSSI survey in January 2024 among 2,935 pensioners) In Slovenia, about 80% of seniors do not feel comfortable in their work environment, while in Finland, this proportion is only 20%. The survey also yielded the following rather alarming results:

  • 43% of respondents do not trust the Slovenian pension system.

  • According to the majority of respondents, 40 years of work is the only fair retirement condition.

  • Only 9% of seniors plan to extend their work after meeting the conditions for retirement, and the most common reason is financial.

  • 73% of the surveyed pensioners find it difficult or are unable to cope with their pension, 30% give up adequate nutrition, and 21% give up adequate heating.4

The fundamental problem is that society perceives pensions as "our help for the elderly," while forgetting that this is the money that pensioners have paid into the country's pension funds over their 40 years of service. Slovenian tax laws are not the most favorable to senior activities. Namely, when activated, they lose part of their earned pension, and the taxation of part-time earnings is among the highest in the world.

This shows that Slovenia has a double challenge: to create legal and tax conditions that will be conducive to maintaining activity and thus integrating seniors into society. At the same time, it is also necessary to contribute to a shift in the mindset among employers and seniors themselves towards understanding that the silver economy is welcome for both, as well as beneficial for society as a whole.

Slovenia has two key documents: the White Paper on Pensions and the Strategy for a Long-Lived Society, but unfortunately, there are too often lags between the definitions in principle and the practical measures. With the adoption of the pension law (ZUJF), it was confirmed that the mandatory retirement at the age of 65 remains in force, which shows how much Slovenia is still lagging behind developed countries in understanding the silver economy.

A quality silver economy and a good life for seniors naturally require the regulation of many areas: from appropriate pension and tax legislation, a well-functioning labor market, support for new and small businesses, and the social protection system to adequate healthcare, education, and active support for intergenerational cooperation.

For Slovenia, it must be said that certain challenges remain in all areas, but the country is distinguished by its safety, which is by no means unimportant for the quality of life of seniors. Given the different regulation of living conditions, Slovenia could even become one of the destinations for pensioners from a number of European countries, which, of course, would require some additional efforts for state and local government bodies, but could bring a certain, not exactly negligible income.

How to support the silver economy?

In solving the problems that characterize the state of the silver economy, it would be necessary to focus primarily on quality research and social activities in the following thematic areas:

  • To assess the global situation, good practices, and trends in the development of the silver economy;

  • To examine the development, specificity, and challenges of the silver economy in a respective country;

  • To assess the possible economic and social effects of proposed policies and measures in a respective country;

  • To raise awareness of the importance and benefits of the silver economy among seniors, employers, the wider society, and in the political-administrative sphere;

  • Support existing senior citizens' associations and specialized support organizations;

  • Engage the academic community and the media more strongly with the aim of raising awareness of the importance and benefits of a well-functioning silver economy.

The processing of these issues, the research projects, and the formulation of proposals for their solution, and their public presentation promise to contribute to the necessary shifts, which are more than necessary and urgent.

It is obvious that most countries are facing serious challenges in this area, which requires intensive activity in the direction of awareness in society as a whole, strengthening political will for constructive and responsible problem solving, and constructive cooperation of all relevant sociopolitical factors. They need to understand that this is not just about solving the problem of seniors, who deserve more attention, but about a proper adjustment to the global demographic changes that have taken place over the last few decades and are continuing intensively.

A successful development of the silver economy is the only logical response to these demographic and other consequent challenges. Only countries that are able to respond quickly and qualitatively enough to these challenges will be able to use them for accelerated socio-economic development, for the benefit of all of their members.

References

1 Wikipedia contributors. (n.d.). Silver economy. Wikipedia.
2 Global Coalition on Aging. (2024, December 3). Report on the Silver Economy Forum 2024.
3 European Insurance and Occupational Pensions Authority (EIOPA). (2025, February 11). IORPs in Focus Report 2024.
4 Zveza svobodnih sindikatov Slovenije. (2024, January 24). Anketa o upokojevanju 2024.