The Social Cost of Dementia

If dementia were a country it would be the world’s 18th largest economy - this is the estimated annual cost of coping with dementia according to a new World Alzheimer Report available here and reported here on the BBC news web site. The analysis highlights some of the economic and social consequences of the illness which itself is becoming more prevalent as average life expectancy rises year on year. Lost earnings incurred by people taking time off work to care for a loved one accounts for the bulk of dementia’s costs - and naturally this figure is much higher in richer nations than in countries with lower to middle incomes.

The report says that after age 65, the likelihood of developing dementia roughly doubles every five years.Alzheimer’s Disease International estimated that there are 35.6 million people living with dementia worldwide in 2010, increasing to 65.7 million by 2030 and 115.4 million by 2050. Nearly two-thirds live in low and middle income countries.

My AS Economics students are researching an assignment on the economics of health care - there is a supporting presentation here - and I am hoping that they will consider some of the steep costs of providing care for the elderly as part of their answer. It is a growing burden on the economy and one who global size is now considerable.