1 List the factors that account for demographic ageing and the increase in life expectancy at birth. Identify the countries or regions that currently have the largest elderly populations. Will they be the same in 2050? Explain why. Explain the economic consequences of an ageing population. K E Y Q U E S T I O N S The economic cost of ageing Currently, demographic ageing is increasing State expenditure and endangering the welfare of elderly people in the future. This is because: 12. The elderly dependency rate by country WORK WITH THE IMAGES Look at the map of the elderly population of Spain in your atlas. Which provinces have the highest and lowest elderly populations? Interpret the map. Which regions currently have a high dependency rate? What does this signify? 959143_02_p63_mund i_pob_mayor A T L A N T I C O C E A N I N D I A N O C E A N P A C I F I C O C E A N P A C I F I C O C E A N SOURCE: UN, 2020. 0 1.400 kilometres Scale , Less than 5 From 5 to 10 From 10 to 15 959143_02_p63_leyenda_mundi_pob_mayor From 15 to 25 More than 25 Elderly population as a proportion of the active population (in %) The elderly dependency rate is increasing This rate expresses the ratio between the population aged 65 and over and the working-age population (between 16 and 64 years old). (12) Working people are having to pay more taxes because the state has to maintain the growing retired population. State revenue is falling and expenditure is rising There are fewer working people paying taxes. These taxes pay for social care and pensions. The state is paying more pensions because there are more retired people. It is also spending more on health care and care for the elderly. As a result, many governments are raising taxes and the retirement age. Economic growth is slowing Elderly people usually have less income than when they were working so they spend less. As a result, consumption decreases and the economy grows less. 37
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