The Question
Many countries now have a rapidly ageing population. What problems does this create for society and what measures can governments take to deal with these problems?
How to approach this question
Identify 2–3 root causes or problems clearly, then propose specific, realistic solutions for each. Examiners reward solutions that are logically connected to the problems identified.
Ageing populations represent one of the most significant structural challenges facing developed and many developing nations. As birth rates fall and life expectancy rises, the ratio of retired citizens to working-age taxpayers is shifting in ways that strain existing social systems and require urgent policy responses.
The primary challenge is fiscal. Pension systems designed when the average retiree lived for ten to fifteen years after leaving work now face recipients who may draw benefits for thirty years or more. In Japan, pension expenditure already accounts for over 10% of GDP, and projections suggest this will continue rising without structural reform. Simultaneously, ageing populations place greater demand on healthcare systems for chronic disease management, specialist care, and long-term residential support - all of which are labour-intensive and expensive to provide at scale. A shrinking tax base must fund an expanding bill, creating a structural deficit that cannot be resolved without deliberate intervention.
Governments have several practical levers available. Raising the retirement age in line with life expectancy increases the length of productive contribution and reduces the duration of pension payments - a reform implemented in France, Germany, and the UK, albeit with political resistance. Expanding skilled migration targets younger workers who contribute taxes and fill critical vacancies in healthcare and construction. Investment in automation and productivity-enhancing technology can partially offset the impact of a smaller workforce. Finally, pronatalist incentives such as subsidised childcare, extended parental leave, and child benefit payments have shown modest success in countries like Sweden in sustaining birth rates closer to replacement level.
In conclusion, ageing populations create unsustainable fiscal and labour market pressures that no single policy can resolve. A combination of retirement age reform, targeted migration, and productivity investment offers the most resilient response available to governments.
279+ words · Targets Band 7.5
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