What are the problems and opportunities associated with an ageing dependant population?

With recent healthcare advances and better lifestyles people are beginning to live longer, which in developed countries, such as the UK, is resulting in a higher population of elderly people. This population shift brings with it both issues and opportunities for the country. A growing elderly population means that in the near future there will be proportionately fewer people within the working age band compared to the retired age band. Elderly people place a higher demand on health services, spend more time in hospital beds, in care and in nursing homes than younger people and this requires funding. The government has to spend more to fund this which largely comes through taxation. Finally, in developed countries there is an expectation that when people retire from work, they want a pension. With a greying population and the proportion of working people decreasing the taxes must also increase to fund State pensions.

However, an ageing population may mean that people are living longer and have more fulfilled jobs for longer or work part-time, so can contribute to the economy through taxation for longer. Similarly, they may help contribute to the economy in other ways e.g. through tourism and travel as they have more leisure time. Many retired people may also do voluntary work. Finally, increasingly grandparents are now fulfilling child care roles for their grandchildren as the cost of child care rises. This also has social implications helping to unite an extended family.