A Global Perspective on an Ageing World

(Excerpts from article from UN)

The world’s population is ageing at an unprecedented rate. The same problems present in the early 2020s will only grow in 2025. While increased longevity is a positive development, it also presents significant economic and social challenges, particularly for countries with rapidly ageing populations. This article draws upon a variety of research papers and articles to provide a comprehensive analysis of the economic and social risks associated with an ageing population and examines the factors that contribute to a country’s vulnerability to the risks of population ageing, ultimately identifying those most at risk

• A high proportion of elderly people in the population increases the dependency ratio, placing a greater burden on the working-age population to support retirees through pensions, healthcare, and social security.

• Low birth rates exacerbate the challenges of an ageing population by reducing the number of people entering the workforce and contributing to the economy.

• The dependency ratio, the ratio of non-working-age people (both young and old) to working-age people, is a key indicator of the economic strain caused by an ageing population. High dependency ratios mean fewer workers support a growing number of dependents.

• Countries with weak social safety nets for the elderly are more vulnerable to the economic and social consequences of population ageing, as retirees may face poverty, inadequate healthcare, and social isolation.

• Ageism can lead to discrimination against older adults in employment, healthcare, and social participation, further exacerbating the challenges of an ageing population.

• Low labour force participation among older adults reduces the potential workforce and can contribute to economic decline.

Conclusion

Population ageing is a global phenomenon with significant economic and social implications. Countries with high proportions of elderly people, low birth rates, weak social safety nets, and prevalent ageism are particularly vulnerable to these risks. Addressing these challenges requires comprehensive strategies that promote economic growth, strengthen social security systems, and foster inclusive societies that value and support older adults.

Active ageing policies can play a crucial role in mitigating the negative impacts of an ageing population. Policies that promote healthy ageing, lifelong learning, and employment opportunities for older adults can contribute to economic and social well-being. For example, promoting lifelong learning can help older adults acquire new skills and adapt to changing labour market demands, while ensuring access to quality healthcare can enable them to maintain their health and independence.

Summary

Research highlights the complex interplay of demographic, economic, and social factors that contribute to a country’s vulnerability to the risks of an ageing population. While increased life expectancy is a positive achievement, it also presents significant challenges that require proactive and comprehensive policy responses.