An Ageing Population Introduction An effective labour force has always been a core feature helping in the economic growth

of a country. It is therefore immensely important that the population structure of any economy be such that the dependency ratio is not very high, and the people exiting the labour force are in a lesser proportion as compared to those entering it. Kelly, A. (1995) strongly emphasized upon the fact and stated that a need for a proper population structure is immensely important. Moreover, they analysed the population and the economic growth correlations, and for developed countries such as UK, they empirically proved that population growth is significantly important. In what is expected to be a most competitive era of social survival where every member of the society would have to compete in order to stay afloat, there is a tipping of scales that was previously an oblivious foresight. It is the imbalance for the disadvantaged. What seemed as only a grim, mere possibility years ago will turn into a fact that would affect all in the next few years. Today there are 10,000 people aged 100 or over. By 2050 there will be 275,000. By 2030, people over 50 will comprise almost a third of the workforce and almost half the adult population. Demographic Structure of UK According to the statistics (CIA World Factbook), UK has a population of around 62 million, and a low population growth rate of 0.56%. Due to these reasons, UK is facing a severe problem of population entering the retirement age. The 2001 census in the UK brought forth the revelation that for the first time in recorded history, there were more people aged 65 and older than those under 16 living in the country. Moreover, another main concern is the that with the retirement of the baby boomers, the workforce will fall, and the taxable age will either shrink or become stagnant, consequently leading to a gap in the job markets and a shortage of the required workforce. This means that a large aged population is a clear indication of the augmentation of the dependency ratio value. A larger dependent population with a limited working class therefore means that the standards of living subsequently fall. Therefore in case of the current pattern continuing, there would be gradual increase in the older segment of the society. This would most definitely inculcate a wide range of drawbacks for the currently flourishing social order; a change in the balance that currently persists. Consequences of the Aging Population As of one, there would be a crisis regarding the growing numbers of the pensioner population. What had been a ratio of 3.2 persons of working age to every person of pensionable age in 2008 is projected to fall to 2.8 persons of working age for every person of pensionable age by 2033. This would require a divergence of much of the public spending (which already stands at 65%) for the benefits for elderly people. The aging population in UK is a greater economic threat than the financial crisis. With the population aging, it is certain that the baby boomers shall be entering into the retirement bubble. This as a result will lead to an increase in the budget deficit as the pensioners collect their medical and retirement benefits. However the falling ratio would see to it that in order to sustain the current balance, either tax is increased or another source for acquiring pension amount is found. (Jeremy Lawrance 2002)

Then there is the dependency problem. Old age requires attending to and in most cases, this responsibility falls on the working group. This puts added pressure on them while in places where social structures are not too strong and old age homes take care of this population, they have to be run on government expenses. (Booth, P, Cooper, D and Stein, G 2000), Moreover, there would be an added strain upon the health sector in order to cope up. The National Health Service (NHS), being the main provider of healthcare in the UNITED KINGDOM provides free of cost medical services which are paid for from general taxation. Health, Britain's ageing population (1999), an article published by the BBC News suggests that the aged population, which requires extra health care, would become a strain on the tax payers. Also, although research shows that with an increase in general age of the population, there has been a considerable decrease in severe health conditions in old age but on the other hand; there has been an increase in minor health problems. There is also a possibility of falling standards if the medical institutions are not funded enough so the country can very well fall into a serious crisis where people would have to go to private health clinics which are costly resulting in the deepening of class discrimination. (Visco, I 2001) Class discrimination, as has been shown at various points throughout our history, can be a rather denting prospect. When standards fall with a decrease of wealth so does an individuals confidence in his/her policy makers. Riots, it seems, is what the United Kingdom is not at all suited to given the mayhem created by the London Riots. So dire need arises for searching and finishing off the base root causes which, if only speculatively, point towards ageing as one of its many causes. As the number of people reaching the highest average age line increases (especially as this includes the baby boomer generation which nears its retirement time in recent years), so does the need for providing logistic support to this higher segment of the society. In an already densely populated United Kingdom, this would be a setback which may not at the moment seem threatening but will definitely prove so in the not much far future. London itself stands at a population density of 5206/km2. Added burden is definitely going to cost this city a lot as it would not be able to withstand such pressures on its economy and logistics. (Garry Young 2002) Policies Recommendations and Implications According to the Britains ageing population (2011), published by 21st Century Challenges, RGS-IBG Royal Geographical Society with Institute of British Geographers, it has been argued what have evidently been the causes of this phenomenon have been named as increasing life expectancy and decreasing fertility rates. Today medicine is a field that has achieved greater heights than ever could have been imagined. These innovations have been favorable to the life expectancy as have been improved sanitation and greater nutritional production in the United Kingdom. Those born in 1900 could expect to live to either the age of 46 for males or the age of 50 for females. By 2009, this had risen dramatically to 77.7 years of age for males and 81.9 years of age for females. Better average living standards have checked the death rate dramatically. Unlike developing countries, where usually the life expectancy is low and the fertility rate is high, the United Kingdom enjoys this luxury which is at the moment turning into a menace for its economy and social structure. On the other hand, improved availability and effectiveness of

contraception, the rising costs of living, increasing female participation in the labor market, changing social attitudes and the rise of individualism have been some important reasons for the decreased fertility. In the United Kingdom, the fertility rate has been below replacement level of 2.1 children born per woman (assuming all women live for the length of their child bearing years and have children according to their given fertility rate at each age) [Total Fertility Rate {TFR}] since the early 1970s. The average fertility is presently at 1.94 children born per woman. From a fixed point of view, this seems all the more disastrous. If not for the introduction of exemplary social and political structures, this problem might sweep mayhem into the country. It can effectively crumble one of the most modernized societies that at one point in time held half of the world under its rule as colonies to merely nothing more extravagant than other surrounding developing countries. However, there are ways where specifically this phenomenon can be tacked and even benefitted from. Here, need arises for greater support from both the policy makers and the general public as this is a problem which does not have one easy and simple solution but rather a very complicated structure needs to be drawn and that too immediately since the problem is no longer a speculation but a bleak reality. (Emily Grundy) One way would be to increase the retirement age for every individual of the country. With this step, the people would still be working at the age at which they presently retire. With no extra benefits from the government, the possibility of an early retirement cannot interfere with this process. The strain on the working class would relatively decrease as a result. Another solution would be to enforce people to save a certain amount of their earnings throughout their careers as a partial replacement (since a complete replacement would require a large proportion to be sent off in saving and hence be a burden for the financially under privileged) for their retirement pension funds. It is plausible and can be very effective in tackling the problem given that the general public gives in its support to the government and do as asked which puts in greater emphasis on the responsibilities of the society itself. (Garry Young 2002) Increasing pensionable age has been a difficult and controversial step although the British government seems inclined to apply it in the near future. With the aim of increasing the retirement age from 60 to 65 for women and 65 to 68 for men, the British government is trying to tackle the issue and keep the experienced workforce into the labor force. One of the prime reasons to take up this measure is to prolong the impact upon the dependency ratio, which otherwise might be seen to be on the rise. With this step, the strain on the working class would relatively decrease. It is all the more sensible as statistics show people in the United Kingdom living longer and healthier which means that the maximum age till which they can work and earn without putting strain on themselves has raised its bar and so can it bring in greater revenue from each individual. (BBC News 2012) Nonetheless as was stated by the secretary general of the UN, Kofi Annan, "Trees grow stronger over the years, rivers wider. Likewise, with age, human beings gain immeasurable depth and breadth of experience and wisdom, that is why older people should be not only respected and revered; they should be utilized as the rich resource to society that they are." This advice is of measurable advantage as it would be beneficial for both the working age group and the old if the

exchange of experience and information could take place effectively. Government policy making requires a lot of strategic planning which can be enhanced if this untouched resource of knowledge and experience can be brought in. A lot of government sector jobs can be offered at the advisory level for such old age population. These jobs can be made more attractive for the retired people than the pensions in a number of ways such as giving an opportunity to earn much more than the pensions would provide, etc. While they are at it, this segment of the society would feel elated responsibility and a sense of importance which has been greatly lacking in many of the worlds societies where an effective family system does not occur, which is a stark reality in the United Kingdom as well although not on a high scale at the moment, and the old are left helpless to live and survive on their own. Also, there would be a general rise in satisfaction level in the overall society giving the working class a better environment to work in as they would no more be troubled by other concerning issues of family. This would further decrease the effort needed to produce enough for all the pensions in the country. (United Nations Publication) Furthermore, there is need for granting easy immigration for foreign nationals that would increase the inflow of skilled labor as well as bringing in revenue and increasing the number of people in the working age group. This step, however, would require the opening of more jobs to fit in these people. Such a norm is not new as it can effectively be seen that it did more good than harm for the UAE and the Middle East for adapting similar policies whereby working visas are easily offered although the conditions for attaining nationality remain tough due to the ratio of one to eight of the local people to the foreigners. (David E, 2011) And lastly, what the population really needs is encouragement from the government. With improved working conditions, high salaries, greater financial and leisure benefits, there would be a satisfied worker who would give the best in the work that he does and hence effectively produce greater revenues and as a result a greater contribution to the society. Conclusion The aging population has resulted in a sharp decline in the labour participation and the labour force to population ratio. As a consequence of this decline, particularly for the developed countries, the suggestion of a modest decline in the economic growth has been evident. With shrinking labour force, the participation of the elderly among the labour force is evident, alongside the immigration of labour from the labour surplus countries. But again, this is dependent upon the policy designing undertaken by the British Government. (Kelly, A. 1995) Consequently, it can be said that what has been a growing world-wide concern can be dealt with decisively only if effective strategies are put into place. Again, this would require effort on both ends; the policy makers and the general public. These strategies need to be implanted into the social structure as soon as possible and with considerable delicacy otherwise this may be leading towards an economic and social stagnation.

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