The World is Aging
This is not a US-centric issue: the World’s population is aging. The Census Bureau reported that the World’s older population, 65 years or older, is expected to triple by 2050. In the US, the number of people 65 years and older is expected to exceed those 15 years and younger by 4 million by 2050. As a point of reference, the number of persons under 15 currently outnumber the older population by 60%. And by 2030, people aged 65 years and over are expected to account for 12% of the World’s population, up from <8% now.
The chart illustrates the average annual growth rate of population by age through 2050, as projected by the Census Bureau (the data for World and age projections is listed here, while the data for the US population projections is listed here).
Hmm. Kind of makes you wonder what will happen to aggregate demand for goods and services as an increasing number of people retire, effectively switching from saving mode to dissaving (spending) mode. Price pressures?
Here are some other thoughts from the Census Bureau’s release:
Europe likely will continue to be the oldest region in the world: by 2050, 29 percent of its total population is projected to be 65 and older. On the other hand, sub-Saharan Africa is expected to remain the youngest region as a result of relatively higher fertility and, in some nations, the impact of HIV/AIDS. Only 5 percent of Africa’s population is projected to be 65 and older in 2050. … There are four countries with 20 percent or more of their population 65 and older: Germany, Italy, Japan and Monaco. By 2030, 55 countries are expected to have at least one-in-five of their total population in this age category; by 2050, the number of countries could rise to more than 100.