The Aging of Society
The Aging of Society
One of the issues in aging society is related to the economic or financial aspect .Basically the aging population is an effect of the baby boom a few decades ago and the cohorts or that particular batch is now in the age of retirement. Due to the number of people reaching the old age specifically in the United States, the effects can greatly be felt. Based on the reference, there are differences in the economic resources in each generation or cohorts. For example the members of the population who had the access to resources during a successful economic period are comparatively more privileged compared to the other generations (Zinn, 2010). But this is also related to the financial challenge of decrease in asset price as the population is aging. In this situation there is the concept of “asset breakdown” or the selling off of assets by the elderly (Bloom et al., 2011).
The pressure being brought about by the aging population to the state is also one of the most significant points to consider. This can be attributed to the fact that there are pension systems provided by the state and an increase in the number of pension beneficiaries can affect the financial state of the nation. One specific example is the pay-as-you-go (PAYG) which is a publicly funded pension system. In this case, if there are numerous elderly members of the population and fewer contributors, a problematic situation can arise wherein the designated pension cannot be given to the retiring population (Bloom et al., 2011).
There are other financial issues that can be connected to an aging population such as the expected increase in the need for health facilities and support. Other issues are also greatly connected to the financial aspect, thus, the economic sustainability of the nation can be in danger (Bloom et al., 2011).
References
Bloom, D.E., Boersch-Supan, A., McGlee, P. and Seike, A. (2011). Program on the Global Demography of Aging Working Paper
One of the issues in aging society is related to the economic or financial aspect .Basically the aging population is an effect of the baby boom a few decades ago and the cohorts or that particular batch is now in the age of retirement. Due to the number of people reaching the old age specifically in the United States, the effects can greatly be felt. Based on the reference, there are differences in the economic resources in each generation or cohorts. For example the members of the population who had the access to resources during a successful economic period are comparatively more privileged compared to the other generations (Zinn, 2010). But this is also related to the financial challenge of decrease in asset price as the population is aging. In this situation there is the concept of “asset breakdown” or the selling off of assets by the elderly (Bloom et al., 2011).
The pressure being brought about by the aging population to the state is also one of the most significant points to consider. This can be attributed to the fact that there are pension systems provided by the state and an increase in the number of pension beneficiaries can affect the financial state of the nation. One specific example is the pay-as-you-go (PAYG) which is a publicly funded pension system. In this case, if there are numerous elderly members of the population and fewer contributors, a problematic situation can arise wherein the designated pension cannot be given to the retiring population (Bloom et al., 2011).
There are other financial issues that can be connected to an aging population such as the expected increase in the need for health facilities and support. Other issues are also greatly connected to the financial aspect, thus, the economic sustainability of the nation can be in danger (Bloom et al., 2011).
References
Bloom, D.E., Boersch-Supan, A., McGlee, P. and Seike, A. (2011). Program on the Global Demography of Aging Working Paper