How To Deal With Our Aging Population

Due to fertility declines and rising life expectancy, there is an irreversible global trend that has far-reaching economic and socio-political consequences.  Aging populations pose a challenge to the fiscal and macroeconomic stability of many societies.  Increased government spending on pension, healthcare and social benefits are the reason.  What is the solution?

There are many ideas being tossed around, but there is no real plan in place to slow down this global trend.  It is well known that work is a pivotal element of one's well being.  Recognizing this could be an essential part of the solution.  Encouraging and rewarding paid and unpaid work among the elderly could be a major part of the solution to the aging-related fiscal and social challenges.  A gradual retirement scheme allowing older individuals to lower their working hours yet remain in the workforce is one idea.  Furnishing options for and rewarding volunteering, care and artistic activities among the elderly is another good idea.

By the year 2050, the following countries will have between 23% and 40% of their population over 65:  Japan, 40%, Germany 30%, France 23%, UK 26%, Canada 31%, Poland31%, Us 20%, Russia 25%, China 26%.  This means that our work force is aging, and we may not have enough young workers to replace those that retire.  Fertility rates have declined, so fewer people are entering the work force.   This is not an American problem, it's a global problem.

We have to find a productive way to use retired people, and we have to allow people to work longer, if they can.  Think tanks like the Brookings Institute are studying ways to stop this trend, but have not yet come up with any real answers.

When the 65 year old retirement age was enacted, life expectancy was around 75.  Today, many retirees are living into their 90's.  They are costing our healthcare, social security and other social benefits more than we can afford.  With an aging population, we, and the rest of the world, need to look at ways continue to make elderly people productive members of society.  I will write again about the aging population, with thoughts about keeping seniors engaged in society, happy and healthy.