Demographics
The Problem of an Aging Global Population, Shown by Country
The Implications of an Aging Population
The world is experiencing a seismic demographic shift—and no country is immune to the consequences.
While increasing life expectancy and declining birth rates are considered major achievements in modern science and healthcare, they will have a significant impact on future generations.
Today’s graphic relies on OECD data to demonstrate how the old-age to working-age ratio will change by 2060, highlighting some of the world’s fastest aging countries.
The Demographic Debacle
By 2050, there will be 10 billion people on earth, compared to 7.7 billion today—and many of them will be living longer. As a result, the number of elderly people per 100 working-age people will nearly triple—from 20 in 1980, to 58 in 2060.
Populations are getting older in all OECD countries, yet there are clear differences in the pace of aging. For instance, Japan holds the title for having the oldest population, with ⅓ of its citizens already over the age of 65. By 2030, the country’s workforce is expected to fall by 8 million—leading to a major potential labor shortage.
In another example, while South Korea currently boasts a younger than average population, it will age rapidly and end up with the highest old-to-young ratio among developed countries.
A Declining Workforce
Globally, the working-age population will see a 10% decrease by 2060. It will fall the most drastically by 35% or more in Greece, Japan, Korea, Latvia, Lithuania, and Poland. On the other end of the scale, it will increase by more than 20% in Australia, Mexico, and Israel.
Israel’s notably higher increase of 67% is due to the country’s high fertility rate, which is comparable to “baby boom” numbers seen in the U.S. following the second World War.
As countries prepare for the coming decades, workforce shortages are just one of the impacts of aging populations already being felt.
Managing the Risks
There are many other social and economic risks that we can come to expect as the global population continues to age:
- The Squeezed Middle: With more people claiming pension benefits but less people paying income taxes, the shrinking workforce may be forced to pay higher taxes.
- Rising Healthcare Costs: Longer lives do not necessarily mean healthier lives, with those over 65 more likely to have at least one chronic disease and require expensive, long-term care.
- Economic Slowdown: Changing workforces may lead capital to flow away from rapidly aging countries to younger countries, shifting the global distribution of economic power.
The strain on pension systems is perhaps the most evident sign of a drastically aging population. Although the average retirement age is gradually increasing in many countries, people are saving insufficiently for their increased life span—resulting in an estimated $400 trillion deficit by 2050.
Pensions Under Pressure
A pension is promised, but not necessarily guaranteed. Any changes made to existing government programs can alter the lives of future retirees entirely—but effective pension reforms that lessen the growing deficit are required urgently.
Towards a Better System
Certain countries are making great strides towards more sustainable pension systems, and the Global Pension Index suggests initiatives that governments can take into consideration, such as:
- Continuing to increase the age of retirement
- Increasing the level of savings—both inside and outside pension funds
- Increasing the coverage of private pensions across the labor force, including self-employed and contract employees, to provide improved integration between various pillars
- Preserving retirement funds by limiting the access to benefits before the retirement age
- Increasing the trust and confidence of all stakeholders by improving transparency of pension plans
Although 59% of employees are expecting to continue earning well into their retirement years, providing people with better incentives and options to make working at an older age easier could be crucial for ensuring continued economic growth.
Live Long and Prosper
As 2020 marks the beginning of the Decade of Healthy Ageing, the world is undoubtedly entering a pivotal period.
Countries all over the world face tremendous pressure to effectively manage their aging populations, but preparing for this demographic shift early will contribute to the economic advancement of countries, and allow populations—both young and old—to live long and prosper.
Demographics
Top 20 Countries Where Older People Are the Happiest
Advanced economies are the happiest countries for older people, likely due to their stronger social security systems.
Top 20 Countries Where Older People Are the Happiest
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
The newest global happiness index doesn’t have any massive surprises from the ongoing trends of the last decade: Europe generally does the best, Africa is still finding its footing, and Asia and South America have vast rank disparities between constituent nations.
However, as the World Happiness Report notes, happiness levels differ across age groups, and countries’ overall ranks tend to obfuscate how the old and young feel separately. To counter this, the report also creates a happiness index by age.
We’ve visualized the top 20 happiest countries according to those aged above 60. For comparison, we have also included a country’s overall index rank.
Data and Takeaways
The top two countries where the seniors are most satisfied—Denmark and Finland—also happen to be the top two countries on the overall happiness index.
As a general trend, advanced economies make up the bulk of this top 20 list, likely due to their stronger social security systems and financial security. Relatedly, they also tend to do well when it comes to the best countries to retire in.
Country | Happiness Rank (Age 60+) | Overall Happiness Rank (All ages) | Rank Difference |
---|---|---|---|
🇩🇰 Denmark | 1 | 2 | -1 |
🇫🇮 Finland | 2 | 1 | +1 |
🇳🇴 Norway | 3 | 7 | -4 |
🇸🇪 Sweden | 4 | 4 | 0 |
🇮🇸 Iceland | 5 | 3 | +2 |
🇳🇿 New Zealand | 6 | 11 | -5 |
🇳🇱 Netherlands | 7 | 6 | +1 |
🇨🇦 Canada | 8 | 15 | -7 |
🇦🇺 Australia | 9 | 10 | -1 |
🇺🇸 U.S. | 10 | 23 | -13 |
🇦🇪 UAE | 11 | 22 | -11 |
🇱🇺 Luxembourg | 12 | 8 | +4 |
🇰🇼 Kuwait | 13 | 13 | 0 |
🇨🇭 Switzerland | 14 | 9 | +5 |
🇦🇹 Austria | 15 | 14 | +1 |
🇮🇪 Ireland | 16 | 17 | -1 |
🇨🇷 Costa Rica | 17 | 12 | +5 |
🇮🇱 Israel | 18 | 5 | +13 |
🇧🇪 Belgium | 19 | 16 | +3 |
🇬🇧 UK | 20 | 20 | 0 |
Norway, at third, has the first real discrepancy, with its elderly population ranking four places higher compared to its overall 7th place rank.
New Zealand (6th) and Canada (8th) also have gaps with their overall ranks: indicating that the older generation is happier than other generations within the country.
But for the U.S., (10th) and the UAE (11th), this rank discrepancy is in the double-digits.
In fact, when ranking only by those aged below 30, the U.S. ranks outside of the top 50, indicating that its younger residents are significantly unhappier than their older counterparts.
This is an interesting phenomenon mirrored in Canada, Australia, and New Zealand. According to the report, as recently as a decade ago, the younger generation in these countries were about as happy as those aged over 60.
“In the West, the received wisdom was that the young are the happiest and that happiness thereafter declines until middle age, followed by substantial recovery.” –- World Happiness Report.
For other countries like Costa Rica (17) and Israel (18), this pattern reverses. Their overall rank is higher than their rank for older populations, indicating that the young are happier.
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