discussing the impact of an ageing population

Impact of Ageing Population

Old age is now a factor to be considered as major economic , budgetary and social challenges in coming decades . Almost every country in the world is studying the effect of this factor to their country in the coming years . In United Kingdom alone , CBI 's evidences proved that this factor would have significant impact in the social and economic changes in the country especially in the next 40 years . They pointed out that changes of government policies for the ageing population should be change and adjusted to suit

the need of older people . Business must be flexible to change the way they deliver their goods and services in to be competitive

Facts about Demographic Changes

According to Weekend Australia , there will be 350 million people more in Asia alone that aged 65 above , from today 's 150 million people , that is 500 million people by 2060

CBI 's report has mentioned that life expectancy has risen by 50 since 1900 (55 for men and 53 for women ) and now it stands at 75 and 80 years respectively

The Government Actuary Department , for example estimates that the proportion of the 15 per cent in 2000 to 20 percent in 2025 and to 24 percent in 2040 projection for Germany suggest that the proportion of over -60 's will rise from 36 percent to about 52 percent projection for Italy suggest a rise from 40 percent to about 58 percent (ESRC Society Today

Ageing and the Economy

The ageing population will have a strong impact in the world economy in the future . Interest rates in the future will possibly increase . It was predicted that the AAA Ratings that Australia have will drop to BBB in the next 25 years and by the year 2040 investing in bonds not recommended anymore due too high risk that an investor will take

The economy might experience downfall as the population ages . This is because of the fact that the ageing population will be saving thus resulting in the decrease of balance payments surpluses

Ageing and the Workforce

In United Kingdom , it is predicted that the employees will feel the effect of the ageing population much sooner . Because of the demographic changes , problems on the low participation of older workers in the labour force and an increase in the pressure on the pension scheme

The low labour participation is due to several reasons

Sickness - people who do not have jobs maybe due to their disability or sickness . This hinders them in seeking work . Ofcourse , the employer requires healthy people to work in their company and they will not accept people with disability or are sick because it will likely have a bad performance in the company

Qualification problems - companies are seeking for the best qualified person to be part of their workforce . Thus making it difficult for those people to acquire work if their skills are not the qualified for the employers taste . According to CBI , 37 percent of the 50-64...