Wising Up to the Rising Costs of Aging Populations
IMF Blog, August 15, 2011
Source details
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- Wising Up to the Rising Costs of Aging Populations
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Bibliographic details
- Authors: falling fertility, rising life expectancy.
- Published: August 15, 2011
Summary and context
- Publication date: August 15, 2011
- Author of the page: Jeremy Clift
- Theme: Global demographic transformation driven by falling fertility and rising life expectancy, with significant consequences for public and private budgets and intergenerational welfare.
Demographic projections and key figures
- The world’s population will reach 7 billion this year.
- The world’s population is projected to exceed 9 billion in 2050.
- Populations in rich industrial nations and some middle- and lower-income countries, such as China, will age as the proportion of elderly people rises dramatically.
Anticipated challenges
- Rising elderly populations could:
- Threaten the ability of many countries to provide a decent standard of living for the old without imposing a crushing burden on the young.
- Affect every dimension of life—from the shape of the family to the shape of the world order.
- Population aging will challenge public and private budgets in many ways.
Possible mitigating behaviors and responses identified
- Through a combination of:
- Reduced consumption,
- Postponed retirement,
- Increased asset holdings,
- Greater investment in human capital,
it should be possible to meet this challenge without catastrophic consequences.
Research and contributions cited
- Lead article authors: Ronald Lee and Andrew Mason — emphasize important changes in the age distribution hidden behind headline population numbers.
- Neil Howe and Richard Jackson — publish a ranking of which countries are best and worst prepared to meet the needs of the growing wave of retirees.
Multimedia and engagement
- Embedded video reference: http://www.youtube.com/watch?v=0ukNFMeZvcc
- Social engagement: To follow on Facebook: http://www.facebook.com/FinanceandDevelopment
Source: Wising Up to the Rising Costs of Aging Populations (IMF blog page), August 15, 2011.