What is the burden of ageing population?

The burden of ageing population simply results in more burden on the working population.
However, increased life expectancy combined with declining birth rates have caused many to worry about the impact of an ageing population. Frequently, we hear about ‘a demographic time bomb,’ and the fear future generations will struggle to meet an ever increasing number of retired workers and pension commitments.

Those in retirement tend to pay lower income taxes because they are not working. This combination of higher spending commitments and lower tax revenue is a source of concern for Western governments – especially those with existing debt issues and unfunded pension schemes.