Implications of an ageing population
Negative impacts of ageing population
BBC This suggests a very big increase in the dependency ratio and is consequently a cause for concern because, with current spending pension commitments, it will place a higher burden on the shrinking working population. But the problem is how to deal with the economic and financial implications of a growing aging population. With an increasing aged population, there will also be shortages of skilled labor trained to care for aged patients. A Growing Problem For humanitarian purposes, providing for the elderly is an important consideration for any government. It was not only due to older people less likely to be participants in the working population but because they were less productive on a per-worker basis. The increase in life expectancy can be rooted in declining infant mortality rates as well as the decreasing number of children deaths from childhood diseases. A recent study from Ethiopia highlighted the labour of older men in construction, and trading; of older women as housemaids, traders and craft makers. Reduced economic growth Nations experiencing a shrinking population will see a reduction in financial capital that could be used for long-term investment and enhancing economic growth. Think of Cadbury and William Wilberforce who were well ahead of their time. Combined with lower fertility rates and reduced replacement of people, nations have started to experience shrinking populations. The problem is huge and the solutions are difficult, but something must be done or else the situation will only get worse.
Nations will have to make many changes or face slower economic growth and increased social costs that they should have dealt with earlier. Crucially, older adults also free up the time of younger people from household responsibilities, enabling them to undertake paid labour. Source: Percentage of population over 65, UN population report Evidence from Latin America reveals that where older people live in multigenerational households, old age benefits are shared with other family members, while in Asia grandparents may transfer financial assistance directly to their grandchildren.
This will involve more and expensive health treatments in order to properly care for elderly patients or to make their conditions comfortable.
However, the increase in government consumption can lead to a decline in aggregate productivity by shifting away economic activity in the more productive private manufacturing sector to the service sector.
Implications of an ageing population
But Russia is not the only county with such problems. Dr Keisuke Otsu describes some of these trends in his Think Kent video. The bottom line is that an increasing aging population will have an impact on the rate of economic growth and therefore affect every member of society. BBC This suggests a very big increase in the dependency ratio and is consequently a cause for concern because, with current spending pension commitments, it will place a higher burden on the shrinking working population. Grandparents in Cambodia, for example, caring for their grandchildren following the death of their own children from an AIDS-related illness have had to deal with the additional stress of the loss of their spouses and other older adults under the Khmer Rouge. The problem for pensions is the declining number of younger workers thus resulting in lower funds being contributed and necessitating a higher return for their investments. The retirement age could automatically be linked to life expectancy. A recent study from Ethiopia highlighted the labour of older men in construction, and trading; of older women as housemaids, traders and craft makers. Many western governments fund their pension plans through pay as you go, rather than saving national insurance contributions. An ageing population could lead to a shortage of workers and hence push up wages causing wage inflation. In recent years, the impact of an ageing population in the UK has also been mitigated by a rise in net migration levels.
Yet, the church should be leading the way in expressing the worth, dignity and value of the older generations to us as a society. In the United States, projections state that the level of social security contributions will start to fall short of legislated benefits this year.
There is a concern, western economies have entered a period of secular stagnation — falling growth rates. This could lead to gaps in spending commitments.
All of this costs money and will increase not only due to rising demand by an aging populace, but also because of inflation.
based on 110 review