The Impact of an Ageing Population

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As we all know, one of the global issues, ageing population has affected the worldwide and are known to increase within the next few decades. This essay will analyse the impact of ageing population where it is one of the main impacts of global issues in the 21st century today which have influences on not only socially and economically but also politically as well from the Ministry of Health. In addition, the ageing population have effects from different perspectives such as towards the New Zealand Society itself and also New Zealand companies, especially retirement homes like ‘The Selwyn Foundation’. Throughout the world, ageing population has affected most countries around the world. In the past few years, there have been high birth rates and death rates. However, the number of proportion for elderly has increased rapidly which has never been seen before by the history of civilization (United Nation: Programme on Ageing, n.d.). By 2050, United Nations have predicted that the number of elderly over 60 years old will increase from 10 to 22 percent alone. Especially in Europe, the life expectancy is greater than other parts of the world where the population that is over 60 years old was already one third during 1995 (UNECE Ministerial Conference on Ageing, n.d.). In 2020, it is predicted that one out of four people will be at least 60 years of age. As well, at the same time the younger population will be decreasing. On the other hand, in New Zealand, the age will increase significantly over the next 50 years. Nevertheless, as the biggest city in New Zealand, Auckland still remains a young average population compared to other cities where only 16 per cent forecast to be aged above 65 years by 2026 (Elderly Population a future concern, 2010). However, currently there has been wide debate about whether New Zealand should prepare for population ageing by increasing national savings (Bryant, John., Guest, Ross., & Scobie, Grant, 2003) in order to achieve target growth to increase living standards but there are no solutions been made on this decision yet. In 2004, it was estimated that there were 844,000 people living in New Zealand under the age of 16 (the current school leaving age) and 1,325,000 people aged 65 years and over (the current general retirement age). Therefore, by the year 2051, the total dependency ratio in 2051 with 42 percent will be similar to the dependency ration in 1951 with 43 percent (Population and Sustainable Development, n.d.). However, the ageing structure will be different as a result of affect from ageing population. In the latest news, the Ministry of Health Tony Ryall commented that “The number of New Zealanders over the age of 85 will increase from nearly 50,000 to more than 125,000" (Changes need to cope with ageing population, 2010). As well, with more rising of life expectancy and developed medical treatment, population is ageing more slowing which means that the burden of ageing population may not be dramatic and feared. The change of ageing population affects the demand and supply for ‘The Selwyn Foundation’ because the affect in supply depends on the elderly who are increasing on the demand in health care and disability services with chronic disease and dementias each year. This means that more elderly will likely to be in need of to be taken care off in the rest homes because their children may be busy so rest homes will be a convenient place for them to stay in since there will always be someone around to take care of them. On the other hand, productivity growth refers to the quantity of goods services that a worker can produce for each hour of work. Due to the ageing population in New Zealand, currently the ratio of population aged 65 and over to the 'working age' population aged 20 to 64 is about one-quarter. By the year 2050, this ratio is expecting to rise to a point where fewer workers will have to support more non-workers (Professor Tim Maloney says ageing population, poor...
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