Social and Economic Outlook for Aging Population Social and Economic Outlook for Aging Population Aging population is the growing and increasing proportion of the elderly group of people. The old population has effects on the economy including a slow labor force and shortage of skills. It also leads to diminishing of revenue growth for the government and increasing of health related costs (Workers, 2005).
In the aging population, a big number of people move from the labor force. thus, causing a very slow growth of the workforce. The share of work for this group declines and is not replaced completely. Participation in labor force begins to drop at the age of 55 after retirement from the work force. With the workforce aging, employers will have to grapple with an increasing number of retiring workers. Slow labor force growth leads to spread of economic implications. For the old age population, it is difficult to achieve balance between work, family and social responsibilities. For example, Fourge et al found out that GDP fell by 14% if age of retirement remained the same. It would increase by 3.5% if age of retirement were increased (Workers, 2005).
As the workforce move, to older cohorts the issues of illness and disability increase. The old population has effects on the social outlook. Health care costs for the old population is high compared to the younger population. In the first years of life, the health costs are low up to the age of 44, and they begin to rise and shoot very high at the age of 65. For example, in the year 2002 the expenditure for infants was 5,931 dollars, the expenditure for ages between 65-74 was 4,700 dollars, it rose to 8,600 for every individual between ages 75-84 and further to 16,090 for each person of age 85 (Workers, 2005).
Workers, C. I. (2005). Growing Up: The Social and Economic Implications of an Aging
Population. Aging Population Journal, 120-130.