These 11 countries with highest aging population are facing a pile of problems – from the risk of total depopulation across shortage of labor force to increasing aging-related expenditure. According to United Nations, by the year of 2050, the number of older people will exceed the number of young for the first time in history bringing the whole spectrum of problems. Some nations simply won’t survive increasing trend of depopulation, and it is very likely that demographic map of the world will change in the near future. Nations that get through negative population growth will have to deal with the lack of working force and greater expenditures for pensions and health care for older citizens which will, in turn, slow down or reverse economic growth. Finally, growing trend of aging population affects consumer spending as older citizens spend less than young ones.
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To tackle the problem of aging population, governments are trying to implement different measures – from extending the retirement age to reducing years of study so young people can enter job market earlier. Moreover, countries are offering stimulations and benefits for families who decide to have more children hoping that such policies would, at least, slow down depopulation trend. However, all these measures seem to have little effect as life expectancy is extending and fertility rates are decreasing even in these 11 countries with highest female population.
Advancements in medicine, use of new technologies and treatments have extended the life expectancy. Since the beginning of the last century average lifespan has more than doubled, and today it is almost 71 years. Moreover, incurable or chronic illnesses aren’t anymore equivalent to a death sentence. For instance, when HIV was first detected, infected person lived approximately 12 years from the moment of infection, while now some groups of HIV patients have the same or longer life expectancy than healthy people. Finally, although relative low fertility rate has been characteristic of developed countries, today less developed nation are following the same trend. Only sixty years ago women from underdeveloped countries had six children on average while in 2005 they had two children.
We created the list 11 countries with highest aging population using as a source CIA The World Factbook 2013-14. We listed the oldest countries using as criteria median age, and here is the final ranking. Additionally, we used European Commission Aging Report to provide data on aging-related expenditures by EU member states.
11. Austria
Median age: 43.6
With 18.92 percents of citizens older than 65 and median age 43.6, Austria has one of the oldest nations in Europe. According to Aging Report, by 2060 the country will lose 181 thousand working age residents while expenditure for pensions will increase by 0.5 percent. Loss of labor force is partly compensated by net migration rate that is one of the highest in Europe. The majority of emigrants are young people who move to Austria in search of employment opportunities. Moreover, together with Germany, Austria is the country that has received the largest influx of immigrants from Syria and other war zones during this year.
10. The Isle of Man
Median age: 43.7
The Isle of Man is a self-governing British crown dependency. The country is not part of the UK, but the UK is responsible for its defense and international representation. According to The World Factbook 2013-2014, 19.81 percent of the population are citizens over 65 years. At the same time, most recent projections estimate that by the year 2035 the number of older people will increase by 75 percent, which means that aging-related expenditure will rise for £ 169 million. A few solutions for the problem of aging population have been proposed – reform of social care and pension system, the attraction of foreign workers and reduction of dependency of older residents.
9. Greece
Median age: 43.8 years
Debt crisis, immigrant’s influx, high unemployment rate…. these are the problems Greece has been struggling within last few years. Compared to these issues, aging population looks like a piece of cake. However, the fact is that 20.46 percent of Greeks are older than 65 years and that currently there are 2.65 million pensioners. Although Aging Report projects that expenditure for pensions will decrease by 1.9 percents in next fifty years, Greece is the country which until recently has had the weakest pension system in the world. Now it is eight lowest, and pensions remain central issue in negotiation between IMF and Greece’s government.
8. Slovenia
Median age: 43.8 years
In Slovenia, 18.4 percent of citizens are older than 65. The aging report projects that working age population will decrease by 263 thousand, which is high if we have in mind that total country’s population is little less than two million. At the same time, ageing-related expenses will increase from 24.7 percent of GDP in 2013 to 31.5 percent of GDP in 2060. Speaking of the aging report’s projection, earlier this year finance minister Dušan Mramor said that Slovenia will have to address the aging problem by reducing the years of study, as well as by extending the population’s working period.
7. San Marino
Median age: 43.9 years
Another low populated country on our list, San Marino, has 19,1 percent of the population over 65 years. This is also one of the smallest countries in the world with the land area of only 24 square miles. The country’s economy largely relies on banking. For years, San Marino has had the reputation of tax heaven for companies who wanted to avoid high taxation in their countries. However, a few days ago EU and San Marino signed tax transparency agreement that will allow EU member states to access companies’ financial and banking information. However, even if banking sector starts contributing less to the country’s budget, tourism will remain profitable branch. Thus, despite aging population, San Marino won’t be wiped out from the world’s map.
6. Italy
Median age: 44.8
In the sixth place on our list of countries with highest aging population, Italy, the median age will quickly rise in years that come. According to Italian National Institute of Statistics, the median age will be 49.8 in 2059. Currently, 21.2 percent of Italians are older than 65 years. Although the number of people who die every year exceeds the number of the newborns, the country has positive population growth rate because of a large number of people immigrating to Italy. Despite high net migration rate, Italy is expected to lose more than a million and a half workers by 2060. In order to neutralize the loss of working force, Italy will have to attract more foreign workers in the future.
5. The Virgin Islands
Median age: 44.9 years
The Virgin Islands, which occupy the area of twice the size of Washington DC, has a population of 103,574, out of which 19.46 percent are citizens older than 65 years. According to Community Foundation of the Virgin Islands, the country faced rapid population decline since 1960 when 46 percent of the total population was younger than 18 years old. In 2010, the number of residents below 18 years was 25 percent. The decline was most evident in the period between 2000 and 2010, when the percentage of the population younger than 18 fell 21 percent. There are two reasons behind the statistics. First, a great number of young people has permanently left the Virgin Islands in search for better education and employment opportunities. Secondly, fertility rate dropped in last twenty years – whereas, in 1990, about 17 percent of women had five or more children, in 2010 the percent of women with more than five children was 8.
4. Saint Pierre and Miquelon
Median age: 45.2 years
There is a chance that you have never before heard of Saint Pierre and Miquelon. This is a self-governing territorial overseas collectivity of France, located in the Atlantic Ocean near Canada, with the population of only 5,657. In Saint Pierre and Miquelon, 18.74 percent of residents are over 65, and population growth rate is second lowest in the world. The list of country’s problems doesn’t end here. After depletion of fish stocks, an economy that is largely dependent on the fishery has been on the decline. Thus, this is one of the nations that might not survive depopulation trend since it can’t rely on immigrants to contribute to population rise.
3. Germany
Median age: 46.5 years
Germany has the oldest nation in the Europe. With median age 46.5 and 21.45 percents of the population older than 65, the country is already facing the shortage of working force. The aging report estimates that by 2060 share of working age population will decline by 15 million while the percent of the older population will rise by two percent. This statistics means that expenditure for pensions and health care will put significant strain on the country’s budget. To deal with effects of aging population on the economy, Germany has opened its boards for foreign workers. Low qualified workers and medical professionals are in highest demand currently and people from less developed countries are seizing opportunities that Germany has to offer. In last year, hundreds of people only from Serbia immigrated to Germany. Additionally, Germany has extended the age of retirement to 67 years.
2. Japan
Median age: 46.5 years
Japan is the oldest country in Asia with 26.59 percent of the population over 65 years and the median age of 46.5 years. With so many old people it is no surprise that the nation isn’t growing but declining – in 2015 population growth rate was estimated at minus 0.16 percent. The ratio of birth and death rate is 9.51 to 7.93. As an island country, Japan remained isolated for centuries and currently, percent of foreign employees in Japan is much lower than in other countries from our list. For now, Japan has managed to overcome the shortfall of the labor force by introducing robots in manufacturing circle, but estimations that in next fifty years Japan will lose half of its workforce has prompted the government to consider implementing measures that will attract foreign workers.
1. Monaco
Median age: 51.7 years
Monaco, the second smallest country in the world with the total population of around 37.800, is the first on our list 11 countries with highest aging population. In the country that is known for its casinos and Grand Prix motor race, the median age is 51.7 while more than third population is older than 65 years. Although the death rate, which is estimated at 9.24 death per 1.000, greatly exceeding birth rate of 6.65, country has positive growth population rate of 0.12 percent mainly due to relatively high migration rate. With 3.83 people per 1.000 coming to live in Monaco, the country isn’t as pressured as some others from our list by the problem of aging population.
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