Population ageing

Population ageing is the process of increasing average age of the population due to declining fertility rates and/or rising life expectancy. Rapid ageing is the demographic feature of several advanced countries. For example, 27% of Japanese people are above 65 years old whereas that in India only 6% are above 65 years old.

Table: People above 65 years of age

Source: World Bank

The ageing of population has occupational and economic implications. With ageing, people’s work capacity decreases and consumption volume in the economy as a whole also may decrease. Here, economic activities may come down. In effect, ageing of population may produce ageing of the economy as well.