Connect with us

News

Demographic Shifts & Aging Population: A Global Concern

Published

on

Demographic Shifts & Aging Population: A Global Concern

On July 11th, the world celebrated World Population Day, an occasion to reflect on demographic dynamics. The global population is projected to reach its peak in the 2080s, but at a lower level than initially anticipated.

Mauritius, with a population of 1.26 million as of December 2023, is no exception. The country’s population is aging, with a decrease in the proportion of people aged 0-14 and an increase in those aged 65 and above.

According to Statistics Mauritius, the proportion of people aged 0-14 decreased from 16.3% in mid-2022 to 16% a year later, while the proportion of those aged 15-64 years decreased from 70.6% to 70.4%.

Conversely, the proportion of people aged 65 and above increased from 13.1% to 13.6%. This trend is attributed to the rising life expectancy and declining birth rate.

The number of people aged 60 and above increased from 244,362 in July 2022 to 252,933 in July 2023 and is expected to reach 269,245 in 2024.

The economic implications of this demographic shift are significant. With an aging population, there is an increase in public expenditures, particularly on pensions for retirees.

The Mauritian government has increased pensions for retirees, with those aged between 65-74 receiving Rs 16,000 per month, while those aged 75 and above will receive Rs 17,500.

However, this trend also poses challenges for the economy. With a decreasing number of young people in the workforce, there is a concern about the sustainability of the pension system.

According to economist Azad Jeetun, the government’s policy should focus on encouraging young people to enter the workforce and creating opportunities for them.

Reaz Chuttoo, a member of the Confederation of Public and Private Sector Trade Unions (CTSP), believes that when an aging population is not replaced by young workers, it can be beneficial for employers and the country.

He cited examples where foreign workers are brought in to fill labor gaps, providing a cheap and efficient workforce.

Jayen Chellum, secretary-general of the Consumers’ Association of Mauritius, emphasized that today’s high cost of living and limited financial support for young families are contributing factors to low birth rates.

He also highlighted the need for a review of retirement pensions, suggesting that those who already receive high pensions or are high-income earners may not need a universal pension.

In conclusion, the global trend towards an aging population presents significant economic and social challenges.

To address these issues, governments must adopt innovative strategies that balance the needs of all generations. Some solutions include:

  1. Retirement system reforms: adapting retirement systems to ensure their long-term financial viability through measures such as increasing the retirement age or introducing income-indexed pensions.
  2. Promoting natalism: encouraging families through policies such as child benefits, paid parental leave, and affordable childcare services.
  3. Mobilizing seniors: promoting active participation by older individuals in the workforce through continuous training programs and fiscal incentives for employers.
  4. Targeted immigration: facilitating immigration of foreign workers to fill labor gaps and support economic growth.
  5. Investing in public health: improving healthcare systems to address the growing needs of an aging population.

By adopting these strategies and taking a proactive approach to demographic changes, countries can better manage the challenges posed by an aging population while capitalizing on its opportunities for growth and well-being across all generations.

Source: l’Express

Spread the News
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *