3.2.1 Impacts of Human Population Change (Cambridge International AS Environmental Management)

Ageing Populations

Spec point — 3.2.1

• The term ageing population refers to a demographic shift where the proportion of elderly individuals (usually 65 years and older) in a population increases over time
• This phenomenon is often found in HICs as a result of declining birth rates and improved life expectancy, leading to a larger proportion of older individuals relative to younger ones
• The global trend of ageing populations in HICs is significant, and has far-reaching implications for societies and economies

Impacts of Ageing Populations on Countries

• Lower tax revenues:

  • Fewer working-age individuals in the population result in a reduced labour force
  • This leads to a decline in income tax revenues as fewer people are contributing to the tax base
  • Governments face challenges in funding social programs and public services due to diminished tax collections

• Higher pension spending:

  • With a larger elderly population, there is an increased demand for pension benefits
  • Governments and private pension systems face the challenge of providing sustainable financial support to retirees
  • This puts pressure on public finances and may necessitate adjustments to pension systems

• Pressure on health care:

  • Ageing populations often experience a higher prevalence of chronic health conditions and increased healthcare needs
  • There is an elevated demand for healthcare services, including long-term care, which can strain existing healthcare systems
  • Governments may need to invest more in healthcare infrastructure and services to meet the needs of an ageing population

• Pressure to raise retirement age:

  • As life expectancy increases, policymakers may consider raising the retirement age to ensure the financial sustainability of pension systems
  • This can be a contentious issue as it may affect individuals' ability to retire and can lead to debates about whether this is fair or not

Population pyramid for Japan

• The population pyramids of HICs with ageing populations, such as Japan, start to develop a pentagon shape with a narrowing base

• This indicates:

  • Decreasing birth rate
  • Increasing life expectancy
  • Death rate is higher than the birth rate due to the ageing population
  • Low infant mortality
  • Ageing population (older dependent population)