The occurrence of aging populations across the world, as already noted, are hailed to be triumph of development by the United Nations Population Fund (2015). However, it is well documented that the aging of a population is accociated with major social, economic an developmental challenges.
One fundamental example applicable to all societies, is that of the old age support ratio falling, this has the direct consequence of the smaller working population having to foot either the increacing finacial and/or physical bill left by the elderly. In developed countreies public transfers of wealth through pensions and healthcare share this burden equally umong its working population via increaced taxation. However, for developing countries with lesser social security infastructure it is said that the increacing elderly population can often fall into poverty. This can have the kock on effect of slowing, or even bringing down the quality of life for entire populations (United Nations Department of Economic and Social Affairs, 2013) (Bloom, et al., 2010).
For the developed world, the challenges of an aging population arise once an individual suppases a fixed retirment age (currentley 65 for men and 60 for women in the UK (Gould, 2015)). Such chalenges can be seen to fall into four interconnected areas. The fist of theese being a lack of workforce numbers and specific skills in the job market. With an ever increacing number of people retiring, and an ever smaller working cohort replaceing them, certain areas of the labour market lack the neccesairy populace to replace them. Secondly, and something already mentioned, is the pressure on healthcare. As the older get even older, increacin...
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...rnets in order to ecourage them to have more children (Brooks, 2015). It is however, uncertian if this is a viable solution for other developed nations.
“Whatever steps policymakers take, younger people are going to have to pay higher taxes (out of higher incomes), old people are going to have to work longer, and retirees are going to have to get by on pensions lower than they were promised and on sales of assets likely worth less than they had hoped. There is no solution, which is why aging is a predicament, not a problem.” (MacKellar, 2000, p. 389)
As noted by MacKellar, it is likely that for the developed world, retirement ages will increase and the working population will face increasing contributions to public funds in order to accommodate the cost of an increasing elderly population. Potential solutions for developing countries however, are not so clear.
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