Well-being And Social Policies

The economic effects of an aging population are considerable. Older people have higher accumulated savings per head than younger people, but spend less on consumer goods. Depending on the age ranges at which the changes occur, an aging population may thus result in lower interest rates and the economic benefits of lower inflation. Because elderly people are more inflation averse, countries with more elderly tend to exhibit lower inflation rates. The largest area of expenditure in many countries is now health care , whose cost is likely to increase dramatically as populations age. This would present governments with hard choices between higher taxes , including a possible reweighing of tax from earnings to consumption, and a reduced government role in providing health care. The expectation of continuing population ageing prompts questions about welfare states’ capacity to meet the needs of their population. In the early 2000s, the World Health Organization set up guidelines to encourage “active ageing” and to help local governments address the challenges of an ageing population with regard to urbanization, housing, transportation, social participation, health services and so on.Aging population is a serious global issue these days, we are supposed to focus on it.