Ageing and Economic Effects

Question 1

What is the current life expectancy for males and females in the UK?

Answer 1

79.2 years for males and 83.3 years for females.

Question 2

What proportion of babies born today will reach 100 years old?

Answer 2

One in three.

Question 3

What has risen due to an ageing population?

Answer 3

The old age dependency ratio.

Question 4

What is the old age dependency ratio?

Answer 4

• The ratio of people older than 65 to people of working age (15-64).
• An increase in life expectancy means fewer working-age people to support the needs of older people.

Question 5

What are the impacts of the rise in older people on the economy?

Answer 5

1. Health and welfare: Higher demand for health and care services increases costs.
   
   2. Pension costs: More people receive a state pension, leaving less money for economic investment.
   3. Employment: Shortage of skilled workers as more people retire. Older people work part-time more often.
   4. Housing: More retirement homes and sheltered housing are needed.

Question 6

How has the government responded to the ageing population?

Answer 6

• Raising the retirement age.
• Encouraging older people to stay in work or work part-time.
• Promoting private pensions.
• Increasing taxes to pay for pensions and welfare.

Question 7

What pressures are there on services due to an ageing population?

Answer 7

1. Advances in medicine help people live longer.
   
   2. Families are less willing or able to care for elderly family members.
   3. More older people suffer from chronic conditions.