Challenges of an Ageing Population

Challenges of an Aging Population

•There are already more people aged over 60 than under 16. •This shift has massive implications for health care, housing and pensions.

The Dependency Ratio

• The UK is facing a growing burden of ‘dependency’ as the proportion of the population aged over 65 is growing.

• The Dependency Ratio compares the proportion of the population that is economically non-productive with the proportion that are economically productive (i.e. those that earn and those that don’t).

• A score of over 70 suggest a lack of balance, indicating high numbers of dependants in comparison with working tax payers.

The Dependency Ratio

• The UK is facing a growing burden of ‘dependency’ as the proportion of the population aged over 65 is growing.

• The Dependency Ratio compares the proportion of the population that is economically non-productive with the proportion that are economically productive (i.e. those that ear and those that don’t).

• A score of over 70 suggest a lack of balance, indicating high numbers of dependants in comparison with working tax payers.

The Dependency Ratio

Population aged 15 - 64

Population aged 0 – 14 and 65 and over

Dependency Ratio 100

Why is the UK’s Population Ageing?

• Population pyramid here

Regional Differences exist

• How would you describe the population of West Somerset?

Regional Differences exist

Interactive version here

Regional Differences

• What does this mean for the services in each area?

Challenges of an Ageing Population

1. Government concerns• Fewer and fewer people working means that

government has less tax coming in. More dependants than the past.

• More elderly people still demand services e.g. health care and pensions.

Challenges of an Aging Population

2. Pensions (ECONOMIC)• Increasing number of people living longer means more

people will receive the state pension.• In 1950 there was one pensioner per five economically

active, today there are three. • The government has raised the retirement age and in

2026 it will rise from 65 to 66 and by 2046 it will be 68. • Private companies like Tesco's are also raising their age of

retirement due to longer life expectancy.

Tesco newspaper article

Challenges of an Aging Population

3. Hospitals (economic) and care homes (social)a. More space is needed in hospitals. As people are living

longer, more illnesses such as dementia are a lot more common. This means that more people are admitted to hospital. Problem of care (e.g. nurses, cooks, etc.) for people in Arizona, dementia capital of the world. (Dementia – Louis Theroux in Arizona the dementia capital of the world - clip here )

b. Care Homes. More and more care homes need to be built to house the increasing % of over 65’s in UK. More jobs e.g. nurses, chefs, receptionists, etc. Also problem of planning controls to build more big care homes. (South East ageing population need more care homes. E.g. Silvermere Care Home, Cobham here )

Challenges of an Aging Population

4. Housing (economic)People living longer means that they stay in their houses for longer. This means that there is a shortage of housing (demand higher than supply). As a result house prices rise higher and higher. Houses need to be adapted for the needs of elderly (e.g. stair lifts or loo’s downstairs). Problem of cost to convert house. Rise in demand (and price) of bungalows.

Challenges of an Aging Population

5. Demand for specific services (economic and social)The aging population requires some certain specific services (use of the Grey Pound)and there can be a challenge to provide these; 1. Holidays for over 65’s (Saga Holidays - Cruises)2. Insurance services 3. Gardening Products

Benefits of a greying population

1. Volunteering 2. Spending money on goods

and services 3. Earning money and paying

tax 4. Bringing wisdom and

experience to the world of politics and commerce.

Past Q – Jan ‘12

Can an ageing population bring benefits? (p130)