Thanks to the developments in technology, various diseases that were deadly are now curable. This caused life span of an average person to increase. Moreover, since women are more focused on their career and people are more conscious on family-planning, they tend to have fewer children compared to the past generations. Therefore, especially developed and developing countries are facing an ageing population and the financial consequences of it.
In all countries, the economy mostly relies on the labour of young people. When there are fewer youngs to carry the economical loads of social services and government investments and there are more retirees to look after, pension payments becomes a serious problem. To overcome this, goverments either keep pensions lower or increase taxes. If they keep pensions lower, older people will have to work even after retirement. As a result of this, young people may struggle finding jobs and unemployment rate increases. Furthermore, as long as they keep their older employees, companies lack the dynamism and energy young people bring and end up falling behind adapting technological advancements. If they increase taxes, the cost of living increases as well. This leads to economical crisis.
Furthermore, the countries that have aging populations need immigrants to do the labour. Since it is also costly to educate immigrants, governments don’t provide necessary training to reintegrate immigrants to the culture of the country. Because of this immigrants experience prejudice, racism and discrimination caused by culture clash.
To sum up, aging population is a serious issue that most of the developed and developing countries have. To overcome this, governments take some measures such as keeping pensions lower, increasing taxes and accepting immigrants. However, these solutions bring new problems so governments should find more effective ones.