Ageing of Europe
The total number of the older population is projected to increase greatly within the coming decades, with rising proportions of the post-war baby-boom generations reaching retirement.
[citation needed] Máire Geoghegan-Quinn, the former European Commissioner for Research, Innovation and Science, stated in 2014 that by 2020 a quarter of the population of Europe will be 60 years or older.
[10] The period after the end of World War II was characterised by good social and economic status of the population in the child-bearing age and resulted in a "baby boom".
[10] The average life expectancy of the older population will depend on the progress in medicine to prevent the diseases which are the leading causes of death.
[10] In the following countries immigration is projected to slow the population ageing: Luxembourg, Switzerland, Norway, Germany, Sweden, Finland, Belgium, Denmark, Austria and United Kingdom.
As the proportion of individuals in the workforce declines relative to those relying on welfare systems (i.e., as the dependency ratio rises), significant financial challenges emerge.
For instance, the World Bank’s 1994 report, Averting the Old Age Crisis, critically examined the role of pension systems in fostering economic growth.
[19] Numerous articles and reports underscore a tone of concern regarding the growing ageing population and its associated costs, particularly rising expenditures on pensions, healthcare, and social care.
For instance, Gruber and Wise [21] observed that between 1980 and 1995, the proportion of individuals aged 65 and above in OECD countries rose by 20%, while expenditure on this demographic increased by 25%.
Additionally, older individuals play a crucial role in family dynamics through grandparenting, which enables their children or other relatives to participate in the workforce without the added responsibility of childcare.
Furthermore, older adults frequently participate in the intergenerational redistribution of material resources, offering financial support to younger family members.
[22][20] It is first important to highlight that the older population is not a homogeneous group with uniform interests or characteristics before exploring their general political preferences.
Variations in health, income, education, cultural backgrounds, and life experiences mean that older individuals often have differing needs, preferences, and priorities.
Unlike younger demographics, the elderly have little reason to prioritize employment prospects, as they are typically retired and no longer participating in the labour market.
Additionally, many older individuals have already repaid their debts, reducing their personal exposure to the adverse effects of higher inflation, such as eroded purchasing power on fixed incomes or increased borrowing costs.
Furthermore, as the priority of financing education, innovation and social and human capital in general is shifted towards the preferences of older voters, this leads to a lack of investment in infrastructure that could support long-term economic growth.
[35] The demographic situation in Europe, characterized by an ageing population and declining birth rates, has prompted national governments to implement various policy measures in response.
[23] On the other hand, there is the perceived economic threat posed to the welfare system, as rising costs for pensions, healthcare, and social care strain public finances.
Additionally, reforming social policies is often suggested, such as raising the retirement age to extend working years, reducing entitlements, rationing treatments to prioritize resources, and enhancing productivity and labour market participation to strengthen economic sustainability.
Consequently, some countries, such as Austria, Germany, Poland, Sweden, and Finland, have established lower eligibility ages (without penalties) for workers with long careers or for certain professions.
[44] These frameworks promote sustainable development in aging societies, health and well-being in late life and environments conducive to an older person's community engagement.
Its projects emphasize the need to prevent chronic diseases and disabilities through gender-specific health targets, improved access to effective treatments, and the creation of age-friendly environments.
In addition, it promotes lifelong learning and participation in economic activities, ensuring older people have access to education and opportunities that align with their preferences and capacities.
[39] The International Monetary Fund's (IMF) High Council of Finance's (HCF) Study Committee on Ageing (SCA) predicted in 2007 that Belgium's population will increase by 5% by 2050 due to immigration, a higher fertility rate, and longer life expectancy.
The collapse in fertility rates from 1.81 to just 1.34 in Finland during 2010s has made the future forecasts even more severe, as the share of working aged population will decrease by hundreds of thousands by 2050s.
[10] Under current fertility rates, Italy will need to raise its retirement age to 77 or admit 2.2 million immigrants annually to maintain its worker to retiree ratio.
[citation needed] The Italian government has tried to limit and reverse the trend by offering financial incentives to couples who have children, and by increasing immigration.
[60] In 1999, Rocío Fernández-Ballesteros, Juan Díez-Nicolás, and Antonio Ruiz-Torres of Autónoma University in Madrid published a study on Spain's demography, predicting life expectancy of 77.7 for males and 83.8 for females by 2020.
Russian Ministry of Economic Development hopes that by 2020 the population will stabilise at 138–139 million, and that by 2025 it will begin to increase again to its present-day status of 142–145, also raising the life expectancy to 75 years.
Organisations like the World Health Organization and the UN have called on the Russian government to take the problem more seriously, stressing that a number of simple measures such as raising the price of alcohol or forcing people to wear seat belts might make a lasting difference.
