Aging Population Chart

Taboo #7 Ageing – Part 1 – Demographics

Taboo #7 – Ageing – Part 1 – Demographics. (Updated August 2019) 

Ageing’s alright, better than the alternative, which is not being here.


In the western world life expectancy has increased over the last two centuries driven mainly by improvements in sanitation, housing, and education, causing a steady decline in early and mid-life mortality mainly due to infections. Medicine has of course played a part with the introduction of antibiotics etc, but engineers rather than physicians have probably contributed more. If the pace of increase in life expectancy continues throughout the 21st century, most babies born since the millennium in those countries with the longest life expectancy will live to celebrate their 100th birthdays.

Today the elderly population, those aged 65 and over represent approximately 8.5 percent of people worldwide but is projected to double to nearly 17 percent by 2050. This is due to not just living longer but living healthier lives accompanied by a concurrent postponement of functional limitations and disability. So not only are our elders living longer healthier lives but their functioning in society is also improved.


The elderly dependency rate is defined as the ratio between the elderly population and the working age (15-64 years) population. In 1980, there were only 20 people aged 65 and over for every 100 of working-age, on average across the OECD; by 2015 this number had risen to 28 and by 2050 is projected to almost double to reach 53. Many OECD and emerging economies are ageing much faster. At the same time, inequalities have been increasing from one generation to the next. Among people starting their working life it is now already much higher than among today’s elderly. Population ageing is poised to become one of the most significant social transformations of the twenty-first century, with implications for nearly all sectors of society, including labour and financial markets, the demand for goods and services, such as housing, transportation and social protection, as well as family structures and inter-generational ties. Younger generations will face greater risks of inequality in old age than current retirees and for generations born since the 1960s, their experience of old age will change dramatically. Moreover, with family sizes falling, higher inequality over working lives and reforms that have cut pension incomes, some groups will face a high risk of poverty, according to the OECD. Globally, the number of persons aged 80 or over is projected to triple by 2050, from 137 million in 2017 to 425 million in 2050. By 2100 it is expected to increase to 909 million, nearly seven times its value in 2017.

The ageing of Japan outweighs that of all other nations, with the highest elderly population. Japan is experiencing a “super-ageing” society both in rural and urban areas. In 2014 this elderly population made up a quarter of its total population and this is estimated to reach a third by 2050. This despite an overall shrinking of the total population. The government has thus had to respond to the stress that these demographic changes place on the economy and social services with policies intended to restore the fertility rate and make the elderly more active in society.

Many countries have introduced reforms to help them adapt their economies, especially pension policies to increase the age of retirement. Measures already legislated for in OECD countries imply an average increase in the normal retirement age of 1.5 years by 2050. But this rise in the statutory retirement age is estimated to fall well short of what is needed. The inevitable conclusion is that, if employment rates do not increase substantially, there will be strong pressure on retirement income in future. Enhancing employment, especially at older ages as well as productivity will thus be critical if we want to preserve the level of pensions for future elderly populations.

So we may have to get used to the idea of paying more into our pensions, work and continue to pay contributions for longer and probably receive less when we do retire. Many will be lucky enough to have index linked pensions from the old world and will be partially protected. Others will find that living longer comes at a price and the repercussions will affect our standard of living, health care and social care costs. Leaving something for the next generation may well become a thing of the past and rather than having a leg up from the bank of mum and dad our children will have to work harder and longer to support themselves for their 100 year life! You might like to look at ‘Taboo #12 Inheritance‘ and ‘Taboo #3 Money‘ too!


Q. How will we and future generations manage to deal with our longevity?

Q. What do we and Government need to do NOW so that our elders can be supported in old age?

Q. Pensions – What do we need to do and what do we need to know? 


Let me know your feelings, ideas and comments!  



  1. I have come to the realization that as I save money now for retirement I will have to plan a retirement where I can continue savings as a safeguard. I am choosing a very simple lifestyle in retirement and will continue to follow a minimalist path.

    Liked by 1 person

    • Good to hear from you – The ‘FIRE’ movement (Financial Independence Retire Early) has this or a similar philosophy that can be relevant even to those of us retiring at the ‘normal’ age. That is stockpile savings and live off the interest etc. Potentially have an alternative source of income – not the ‘big’ job but something investment property, part-time work/online etc. etc. Frugality also seems to come up a lot – FIRE! (£$! Retire Early)
      Taboo #1 Retiring Young

      wishing you health and happiness in your retirement – whatever it looks like!

      Liked by 1 person

  2. […] He said that there is no need to ever retire, but if one must, it should be a lot later than 65. In Japan the current retirement age is 65 and was set half a century ago when the average life-expectancy in Japan was 68 years and there were only 125 Japanese aged over 100. Today, Japanese women live to on average 86 and men 80 and there are 36,000 centenarians! In 20 years it is estimated that there will be 50,000 people over the age of 100. There are many financial and economic arguments for working longer the main one being obvious – If the retirement age is 65 and life expectancy 68 that’s 3 years of pension – not 20 years or so – where’s the money going to come from? Well in simple terms your grandchildren’s taxes and therein lies yet another problem – The Japanese birth rate is falling and the population contracting but with an ever increasing percentage of elderly retired citizens! HOWEVER these demographic and economic considerations are covered elsewhere in this blog. […]


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