In many countries, people are now living longer than ever before. Some people say an ageing population creates problems for governments. Other people think there are benefits if society has more elderly people.
To what extent do the advantages of having an ageing population outweigh the disadvantages?
Life expectancy has increased dramatically over the last century. Although this achievement should be praised lavishly, it has been accompanied by some significant challenges for governments. This is particularly noticeable in countries where the elderly constitute a sizeable part of the population. While this does have its drawback, it has far more significant advantages.
On the one hand, an ageing population in a country is normally associated with massive public spending. First, pension benefits have to be paid to seniors to ensure that they can afford to pay their bills and maintain a good standard of living even after their retirement. Moreover, these citizens typically experience a general decline in their health, thereby necessitating massive funds to be allocated for public health services. Ranging from regular medical check-ups to subsidies on medical products, to the construction of new healthcare facilities – all these expenses add up quickly. Undoubtedly, this can lead to serious financial problems for many governments.
However, elderly people can help their country by creating new job opportunities and increasing tax revenue. The expertise these senior citizens have gained throughout their lives makes them more likely to start successful companies. Except for some companies like Facebook or Microsoft, many highly valued start-ups of the last few decades were founded by older people. This is partly because, they have years of experience in a particular field, so they know the industry inside out. In addition, they will have developed important soft skills through their interactions with fellow colleagues, clients, and senior management, which will be invaluable to manage people in their companies. Clearly, the more successful companies they start, the more workplaces will be created in the country. These companies further benefit the local economy through taxes, increasing the positive impact the elderly have.
In conclusion, countries with an ageing population might indeed struggle financially due to increasing public spending for the elderly. Nevertheless, this is more than offset by the benefits these senior citizens can offer in terms of new employment opportunities and taxes revenue.
To what extent do the advantages of having an ageing population outweigh the disadvantages?
Life expectancy has increased dramatically over the last century. Although this achievement should be praised lavishly, it has been accompanied by some significant challenges for governments. This is particularly noticeable in countries where the elderly constitute a sizeable part of the population. While this does have its drawback, it has far more significant advantages.
On the one hand, an ageing population in a country is normally associated with massive public spending. First, pension benefits have to be paid to seniors to ensure that they can afford to pay their bills and maintain a good standard of living even after their retirement. Moreover, these citizens typically experience a general decline in their health, thereby necessitating massive funds to be allocated for public health services. Ranging from regular medical check-ups to subsidies on medical products, to the construction of new healthcare facilities – all these expenses add up quickly. Undoubtedly, this can lead to serious financial problems for many governments.
However, elderly people can help their country by creating new job opportunities and increasing tax revenue. The expertise these senior citizens have gained throughout their lives makes them more likely to start successful companies. Except for some companies like Facebook or Microsoft, many highly valued start-ups of the last few decades were founded by older people. This is partly because, they have years of experience in a particular field, so they know the industry inside out. In addition, they will have developed important soft skills through their interactions with fellow colleagues, clients, and senior management, which will be invaluable to manage people in their companies. Clearly, the more successful companies they start, the more workplaces will be created in the country. These companies further benefit the local economy through taxes, increasing the positive impact the elderly have.
In conclusion, countries with an ageing population might indeed struggle financially due to increasing public spending for the elderly. Nevertheless, this is more than offset by the benefits these senior citizens can offer in terms of new employment opportunities and taxes revenue.