Problems of an ageing population
The average age of the UK population is rising. Lengthening lifespans and slumping birth rates mean that 2030 the UK’s population of working age will fall to 55%, it is currently 60%. At the same time the number of pensioners will rise from 21% of the population to 27%. This ‘ageing population can cause problems.
One problem is health resources. The elderly tend to be less healthy and require more care and attention than the young. With more of them, there will be and increased pressure on health resources. Currently there are 3 care workers per over 65 year old in the UK, this will drop to 2 soon, thus lowering the dependency ration and possibly reducing the quality of life for pensioners as they will have less provision. More people will have to be employed creating costs for the government, especially as it’s much more expensive to care for the elderly than the young. Also the elderly take up hospital spaces as they can’t be sent home as quickly after procedures or checks. However costs could be significantly offset by the increased health of the elderly and indeed, the young.
A second problem lies in housing. More people, means less housing space. This means housing must be built costing the government. Furthermore, the elderly are much more likely to be in warden controlled flats, council bungalows or old peoples’ homes, these forms of housing cost even more to set up and run than ordinary accommodation. They are state funded meaning the government is paying for gas, electricity, water and staff at the homes, these costs stack up especially considering that there will be more and more of these homes as the retiree population grows.
In my view the biggest problem is in pensions. Currently, the current generation of working age pays a set amount of their salary towards the pensions of the current retired generation. The next generation of workers will do the same for the and so on. Currently there are 4 workers per pensioner. However this is expected to drop to as little as 2 per pensioner. This means that the amount of money coming in per person is halved. Therefore people are getting less money. This shows that the pension system cannot continue in this format or pensions will see a drastic cut.
So what can be done about these problems? To counter the problem of pensions, the obvious solution would be to reduce them. However that is perhaps not fair on pensioners who’ve worked their whole lives, paying for the pensions, for them not to get as much money when they retire. Alternatively, the retirement age could be increased. This increases the number of people in work paying towards pensions, and less retired people taking them. This could be a good solution, however many workers, such as teachers feel that they cannot work efficiently once they reach a certain age. To counter this, people could continue to work part time after a certain age, still gaining money and paying towards pensions, but in a, perhaps, less taxing manor. A solution for all three problems would be to encourage migrants to come to England and work. This would significantly improve the ratio of workers to pensioners. Also they could be hired as helpers or carers for the elderly and even be hired, at a lower cost in retirement accommodation.
As well as the negatives, there are positives to an ageing population. The elderly can contribute a lot to society. Many do voluntary charity work. Charity work is essential to help the less fortunate and the more helping out, the better, especially when they do not have to be paid. Another contribution the make is in goods and services. The retired tend to spend their pension quickly and redistribute it into shops, restaurants and other services. They also still pay taxes. The more of them there are, the more money goes to the government in taxes. The final positive is the wisdom and experience that some bring. They bring experience into the worlds of commerce and politics and help to give a wider view on situations.
The UK average age is on the rise. With it come positives and negatives. There are ways to counter the negatives but it is unclear how successful these would be.
One problem is health resources. The elderly tend to be less healthy and require more care and attention than the young. With more of them, there will be and increased pressure on health resources. Currently there are 3 care workers per over 65 year old in the UK, this will drop to 2 soon, thus lowering the dependency ration and possibly reducing the quality of life for pensioners as they will have less provision. More people will have to be employed creating costs for the government, especially as it’s much more expensive to care for the elderly than the young. Also the elderly take up hospital spaces as they can’t be sent home as quickly after procedures or checks. However costs could be significantly offset by the increased health of the elderly and indeed, the young.
A second problem lies in housing. More people, means less housing space. This means housing must be built costing the government. Furthermore, the elderly are much more likely to be in warden controlled flats, council bungalows or old peoples’ homes, these forms of housing cost even more to set up and run than ordinary accommodation. They are state funded meaning the government is paying for gas, electricity, water and staff at the homes, these costs stack up especially considering that there will be more and more of these homes as the retiree population grows.
In my view the biggest problem is in pensions. Currently, the current generation of working age pays a set amount of their salary towards the pensions of the current retired generation. The next generation of workers will do the same for the and so on. Currently there are 4 workers per pensioner. However this is expected to drop to as little as 2 per pensioner. This means that the amount of money coming in per person is halved. Therefore people are getting less money. This shows that the pension system cannot continue in this format or pensions will see a drastic cut.
So what can be done about these problems? To counter the problem of pensions, the obvious solution would be to reduce them. However that is perhaps not fair on pensioners who’ve worked their whole lives, paying for the pensions, for them not to get as much money when they retire. Alternatively, the retirement age could be increased. This increases the number of people in work paying towards pensions, and less retired people taking them. This could be a good solution, however many workers, such as teachers feel that they cannot work efficiently once they reach a certain age. To counter this, people could continue to work part time after a certain age, still gaining money and paying towards pensions, but in a, perhaps, less taxing manor. A solution for all three problems would be to encourage migrants to come to England and work. This would significantly improve the ratio of workers to pensioners. Also they could be hired as helpers or carers for the elderly and even be hired, at a lower cost in retirement accommodation.
As well as the negatives, there are positives to an ageing population. The elderly can contribute a lot to society. Many do voluntary charity work. Charity work is essential to help the less fortunate and the more helping out, the better, especially when they do not have to be paid. Another contribution the make is in goods and services. The retired tend to spend their pension quickly and redistribute it into shops, restaurants and other services. They also still pay taxes. The more of them there are, the more money goes to the government in taxes. The final positive is the wisdom and experience that some bring. They bring experience into the worlds of commerce and politics and help to give a wider view on situations.
The UK average age is on the rise. With it come positives and negatives. There are ways to counter the negatives but it is unclear how successful these would be.