Between now and 2050, advanced countries will be dealing with a stark reality: ‘the fiscal burden of the crisis [will be] about 10% of the ageing-related costs. The other 90% will be extra spending on pensions, health and long-term care.’ Ageing is creeping up in the rich world. The poor section of the globe is but a few decades behind.

Based on the UN’s latest biennial population forecast, ‘the median age for all countries is due to rise from 29 now to 38 by 2050. At present just under 11% of the world’s 6.9 billion people are over 60. Taking the UN’s central forecast, by 2050 that share will have risen to 22% (of a population of over 9 billion), and in the developed countries to 33%. To put it another way, in the rich world one person in three will be a pensioner; nearly one in ten will be over 80.’

The ageing trend will translate into huge economic, social, and political consequences. For starters, labor forces are shrinking while the number of pensioners and retirees is on a steady rise. ‘Output growth will drop unless productivity increases faster. Since the remaining workers will be older, they may actually be less productive.’

While the effects of the ageing statistics are not yet felt at the moment, the reality will be stark by about 2020. Fact is ‘every one of the 2 billion people who will be over 60 in 2050 has already been born.’

Via Economist.com