The Impact of an Aging Population on the Economy (Essay Sample)

The impact of an aging population on the economy
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The impact of an aging population on the economy
The world is currently undergoing several demographic changes, with changing levels of the aging population. The increase in life expectancy and reduced birth rates has increased the worry about the impact of pollution wholly composed of people of old age. In addition, the current generation is struggling to meet the demands of an increasing number of retired employees in terms of pension payments. Although there are mixed trends in demographics in many countries, it is projected that most developed countries will experience a huge degree of an aging population. So, what are some of the effects that an aging population causes on the economy?[Galasso, Political Future of Social Security in Aging Societies (2104).]
An aging population result to an increase in the ratio of dependency; with a fixed age of retirement age and increased life expectancy, most economies experiences a relatively high number of people claiming pension and other retirement benefits on the workforce. This burdens the current working class, who have to pay an additional tax to cater to additional needs. In the future, this will