Economics Ageing

a map showing median age figures 2015

population ageing increase in number , proportion of older people in society. population ageing has 3 possible causes: migration, longer life expectancy (decreased death rate) , decreased birth rate. ageing has significant impact on society. young people tend have fewer legal privileges (if below age of majority), more push political , social change, develop , adopt new technologies, , need education. older people have different requirements society , government, , have differing values well, such property , pension rights.

in 21st century, 1 of significant population trends ageing. currently, on 11% of world s current population people aged 60 , older , united nations population fund (unfpa) estimates 2050 number rise approximately 22%. ageing has occurred due development has enabled better nutrition, sanitation, health care, education , economic well-being. consequently, fertility rates have continued decline , life expectancy have risen. life expectancy @ birth on 80 in 33 countries. ageing global phenomenon, occurring fastest in developing countries, including large youth populations, , poses social , economic challenges work can overcome right set of policies equip individuals, families , societies address these challenges , reap benefits.

as life expectancy rises , birth rates decline in developed countries, median age rises accordingly. according united nations, process taking place in every country in world. rising median age can have significant social , economic implications, workforce gets progressively older , number of old workers , retirees grows relative number of young workers. older people incur more health-related costs younger people in workplace , can cost more in worker s compensation , pension liabilities. in developed countries older workforce inevitable. in united states instance, bureau of labor statistics estimates 1 in 4 american workers 55 or older 2020.

among urgent concerns of older persons worldwide income security. poses challenges governments ageing populations ensure investments in pension systems continues in order provide economic independence , reduce poverty in old age. these challenges vary developing , developed countries. unfpa stated that, sustainability of these systems of particular concern, particularly in developed countries, while social protection , old-age pension coverage remain challenge developing countries, large proportion of labour force found in informal sector.

the global economic crisis has increased financial pressure ensure economic security , access health care in old age. in order elevate pressure social protection floors must implemented in order guarantee income security , access essential health , social services older persons , provide safety net contributes postponement of disability , prevention of impoverishment in old age.

it has been argued population ageing has undermined economic development. evidence suggests pensions, while making difference well-being of older persons, benefit entire families in times of crisis when there may shortage or loss of employment within households. study australian government in 2003 estimated women between ages of 65 , 74 years contribute a$16 billion per year in unpaid caregiving , voluntary work. similarly, men in same age group contributed a$10 billion per year.

due increasing share of elderly in population, health care expenditures continue grow relative economy in coming decades. has been considered negative phenomenon , effective strategies labour productivity enhancement should considered deal negative consequences of ageing.