What are the economic problems associated with an ageing population?

Firstly, an ageing population puts a greater strain on health services, which will therefore require more government funding; this is particularly an issue because elderly people are more susceptible to health complications that are expensive to treat. Another economic problem is that elderly people do not contribute as much to the economy, as they tend to be retired and hence do not work and pay a lot of tax. Additionally, an ageing population drains the economy, as more money has to be spent on pensions. Furthermore, elderly people require many services, such as public transport due to their lack of mobility, which can be expensive for local governments.

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