Section 1: Defining Ageing, Longevity, and Ageing-in-Place
Section 2: Defining Physical, Mental, and Cognitive Health
Section 3: Defining Financial Inclusion and Financial Well-Being
Section 1: Defining Ageing, Longevity, and Ageing-in-Place
Age: The time lived since birth. Also referred to as the Chronological Age.
Older Adults: Generally refers to individuals aged 65 and above. In some countries, the terms seniors or senior citizens are used for this demographic group. The older adult population is divided into three life-stage subgroups: the young-old (approximately 65–74), the middle-old (ages 75–84), and the old-old (over age 85).
Lifespan: The number of years someone lives from birth to death. The average lifespan for a population refers to the average Life Expectancy at Birth.
Healthspan: The number of years someone is healthy without any chronic and debilitating disease. The average healthspan for a population refers to the average Healthy Life Expectancy At Birth (HALE).
Ageing or Longevity: Generally refers to growing older and is measured as chronological age. The terms are used interchangeably on this website.
Active Ageing or Healthy Longevity: WHO defines healthy ageing as “the process of developing and maintaining the functional ability that enables wellbeing in older age.” Generally refers to growing older with good health, strength, and vitality.
Productive Ageing or Purposeful Longevity: Promotes the view that older adults can be active and purposeful contributors to their work, family, and community and engage in productive behaviors, including paid and volunteer work, continuing education, housework, and caregiving.
Population Ageing: Refers to a shift in the population demographic structure whereby the proportion of people in older age groups increases. This is driven mainly due to decline in fertility rates and an increase in longevity.
Ageing Society: Where less than 14 percent of residents are aged 65 and above.
Aged Society: Where over 14 percent of residents are aged 65 and above.
Super-aged Society: Where over 21 percent of residents are 65 and above.
Elderly Poverty: Refers to the condition where older individuals aged 65 and above are living below the poverty line.
Ageing-in-place: Refers to staying in your own home as you get older, rather than in a retirement community or a senior care facility. Seen as enabling older people to maintain independence, autonomy, and connection to social support, including friends and family.
Section 2: Defining Physical, Mental, and Cognitive Health
Good Health: Refers to the state of being in good physical, mental, and cognitive health, and not merely the absence of disease or infirmity.
Physical Health: State of physical well-being. It is defined as the state where an individual is able to perform the activities of daily living (ADLs) independently. ADL collectively describes fundamental skills required to independently care for oneself, such as eating, bathing, and mobility.
Mental Health: Refers to psychological or emotional health. Physical health is the state of your body, while mental health is the state of your mind, feelings, and emotions. It is a state of mental well-being that enables people to cope with the stresses of life, realize their abilities, learn well and work well, and contribute to their community. Poor mental health includes mood disorders (e.g., depression or bipolar disorder), anxiety disorders, personality disorders, and psychotic disorders (e.g., schizophrenia).
Cognitive Health: Refers to the health of your brain and is the state of brain functioning across cognitive, sensory, social-emotional, behavioral, and motor domains. Often described as “staying sharp” or being “right in the mind.” The four main domains of cognitive function assessment are reasoning, memory, fluency, and semantic knowledge.
Section 3: Defining Financial Inclusion and Financial Well-Being
Financial Inclusion: Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services – transactions, payments, savings, credit, and insurance – that meet their needs and are delivered in a responsible and sustainable way. [World Bank]
Financial Health: Refers to an individual’s or a household’s financial well-being and stability. It involves the ability to manage income, expenses, savings, debt, and investments effectively, as well as the capacity to withstand financial shocks or emergencies.
Financial Well-Being: Financial well-being is not just about avoiding financial problems but also about having the ability to recover from them. It is a new area of research and is measured in many ways, such as income stability; savings for small, unexpected expenses; savings for larger shocks like a job loss; and savings for retirement. See the next question on related metrics and measurements.
Financial Security: Financial security refers to a state of being in which an individual has a stable and predictable financial situation, with sufficient resources to meet their current and future financial needs and goals.
Financial Literacy: Refers to the knowledge, skills, and understanding of financial concepts and practices that enable individuals to make informed and effective decisions. It involves having a basic understanding of various financial topics, such as budgeting, saving, investing, debt management, banking, and understanding financial products and services. Financial literacy has been connected to fundamental financial behaviors such as making informed savings and borrowing decisions, investing attitudes, and behavioral intentions.
Financial Stress: Refers to the difficulty in meeting financial responsibilities due to a shortage of money. Financial stress adversely impacts physical health and psychological well-being. Studies among college students have also found that an inability to manage one’s finances can lead to a higher likelihood of financial stress among college students.