Ageing Population

• Grey Pound - the amount of money the elderly spend.
• Causes of an ageing population:

  • Better healthcare, treatment and medicine
  • Lifestyle changes
  • Baby Boomers are retiring
  • Low/Declining birth rate
• Positives:

  • Free childcare - parents spend money elsewhere and boost the economy. Can also go back to work and be taxed.
  • Some still contribute to society - volunteering at schools or charities
  • They travel - keeps them healthy and social. Creates jobs and benefits economy
  • Increased life expectancy - more time to spend their money
• Negatives:

  • Less economically active people supporting more dependants
  • Increased taxes - less income from taxing wages due to smaller working population
  • Gaps in job markets - causes strain on services e.g. NHS
  • Elderly require support - carers - expensive
  • Shortage of care facilities - more expensive as demand increased so elderly stay in big houses others could use
• Responses:

  • Increasing retirement age - more tax can be collected but may be working less efficiently and not popular
  • Recruitment and training for more carers - creates jobs and reduces stress on NHS but the government has to fund training
  • Allow more immigrants - fill gaps in jobs and can be taxed but there's more people to provide for
  • Pronatalist Policies (encouraging people to have children with cheaper childcare and better maternity leave) - government has to fund policies