Opinion | Don’t fear an ageing population – rising inequality is the real enemy

International organisations, civil societies, governments and scientists around the world all see population ageing as one of the most significant challenges this century. The International Monetary Fund (IMF) argues that rapid global population growth is not the most pressing issue but that “ageing is the real population bomb”.

This is because the number of working-age people declines in a rapidly ageing population, leading to a shortage of qualified workers which makes it difficult for factories, services and businesses to find the necessary employees. This situation will continue to worsen in the decades to come and could significantly undermine global economic output.

The World Health Organization warns that “between 2015 and 2050, the proportion of the world’s population over 60 years will nearly double from 12 per cent to 22 per cent” and that countries will have to “ensure that their health and social systems are ready to make the most of this demographic shift”.

In many developed countries, large parts of the population are over 65, with Japan having the highest proportion of elderly – 28 per cent of its population. People in this age group tend not to be productive, making them a significant economic burden on countries. Two major consequences of an ageing population are a reduction of revenue from income taxes and an increase in spending on the older segment of the population.

Based on the current economic predictions and assessments, population ageing represents a major challenge to the health of the global economy. But is that actually the case?