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Ageing population and the economy - Essay Example

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Possible solutions to these problems are proposed, resulting in numerous programs that are formulated, designed, and implemented to address…
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Ageing population and the economy
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Ageing population and the economy

Download file to see previous pages... Enhancing their welfare is vital in the light of commending them for their contributions in every aspect of the economy before their old age renders them dependent on the rest of the population.
There are myriad possible solutions to the problems with older people in the economy, and so are the bases of their functionality in solving the underlying problems (Gruescu, 2007). One of the programs that could solve the problems with ageing population is having benefits to higher incomes eliminated. The performance of the economy highly depends on the activities that its population engages into. High income earners have a high potential to maintain themselves throughout their lives. However, care should be taken not to overestimate the potential of an individual high income earner. The choice behind this program is the fact that high income earners can effectively accumulate wealth through mobilizing their resources into profit making activities. Eliminating benefits to high income earners would ensure that the disadvantaged population fully benefits from the set programs, as opposed to distributing benefits to the entire ageing population regardless of individual economic potential.
Retirement age is a critical factor that influences problems with older people in the economy, and many people in the economy, ageing population included, argue that retirement age curtails the working potential of the ageing population in the economy (Lee & Mason, 2011). Raising retirement age would significantly address problems associated with older people in the economy. This is due to the fact that the move would lower dependency ratio among the ageing people, thereby allowing younger populations to accumulate the part of wealth that they would have instead directed to the older people. On the same note, the ageing population will be engaged into work activities that will keep them occupied. Their psychological welfare would be enhanced in the process. These two critical ...Download file to see next pagesRead More
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