Ageing Population

Question 1

Problems of an ageing population

Answer 1

• There are decreasing numbers of economically active people in the population and more elderly dependants
• Pensions crisis
  • Elderly people are living in poverty

Question 2

Solutions to an ageing population

Answer 2

• People are encouraged to save for their retirement in pensions and investments
• Retirement age is increasing
  • Faculties such as nursing homes and care workers will be needed, perhaps in preference to schools and nurseries as the population gets older
• Economically active skilled and unskilled migrants could be encouraged

Question 3

How does an ageing population impact on economic development?

Answer 3

• Increase in the dependency ratio - if life expectancy increases and retirement age remains fixed then people will claim pension benefits and there will be less people working and paying income tax
• Shortage of workers - leading to a wage inflation
• Those in work will have to pay higher taxes which will be unpopular