Like many other areas of the world, the UK’s population is quickly aging. As life expectancy continues to increase and more people choose to have children later in life, the gap between the younger and older generation is continually expanding. The question is, what impact on the economy will our aging population have?
More money will be needed to cover healthcare and pensions
One of the key challenges faced with an aging population is funding additional healthcare and pension costs. Although the fact that life expectancy has increased over the years is definitely a positive thing, it does mean more money will need to be spent on age-related health conditions. The NHS in the UK is already struggling, so finding additional money to cover the increased pressure on elderly healthcare is going to prove problematic.
Similarly, pensions will need to be adjusted to account for the fact that more elderly and retired individuals will need increased funds to live comfortably.
The risk of a slower moving economy
A new study from the School of Economics in Kent, looked at how the aging population would impact the Asian economy. It revealed the economy would likely slow down as fewer individuals would be of working age. Although the retirement age has increased in the UK in recent years, meaning more elderly people could remain in work, this itself presents many challenges, especially to businesses.
So, there is a very real risk that the economy could suffer due to a lack of labour available.
How can businesses target the aging population?
In order to reduce the impact our aging population will have on the economy, businesses can start to take steps now. Investing in mobility solutions such as wheelchair accessible vehicles is a great example. This would enable elderly employees with mobility issues to remain able to get to and from work.
Businesses can also target the elderly market to ensure they continue to gain a healthy profit margin. Focusing on products and services which cater to the older population could help to reduce the risk of a slower economy.
Overall, the aging population is a real worry for the UK’s economy. However, provided steps are taken now, it is possible to overcome the challenges and adapt ton older population. Ensuring funding is placed into senior healthcare and pensions, as well as developing products and services for elderly consumers are just two possible solutions which could be worked upon.