Presently, there is an increase in average lifespan in different nations. While this situation can have far-reaching implications for the economy and healthcare system, these effects can be curbed by encouraging higher birth rates and raising the retirement age.
Long life expectancy has a substantial effect on the economy. When aged individuals retire, they tend to rely on their pension and government support. As a result, the state should spend an enormous amount of money in order to maintain the elderly’s well-being. Therefore, this may slow down the economic growth since crucial funds would be allocatd predominantly to elderly care, not on advancements or investments in the younger generation. Another pressing challenge is healthcare expenses. Over the years, people become more vulnerable to numerous diseases. For example, illnesses such as cancer and diabetes are more common in old individuals, so they demand specific treatments and medical equipment for treatment. Consequently, the authorities might spend much money to monitor their state of health.
One effective measure is motivating citizens to have more children by launching special aimed campaigns. Currently, many young individuals do not pay adequate attention to the value of starting a family. However, if the government demonstrated the importance of this, it would significantly improve the level of birthrate. Furthermore, young couples may not have a sufficient amount of money to provide all needs to their children, so the government can integrate some benefits and privileges for this segment of the population. Another approach is the increasing retirement age. With the extended retiring age, many adults can work longer, diminishing the dependency on the pensions while contributing to the economy. For instance, in Russia, a reform was conducted, and the pension age was increased by 10 years; thus, it allowed aged people to keep working.
In conclusion, the rise in life expectancy presents noticeable challenges, including economic tension and healthcare demands. The problem can be addressed once the authorities run policies and increase the pension age.