20 Apr 2016
Working Age Population: Demographics
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Australia is forecast to continue to grow our working age population (individuals aged 15 to 64) all the way through to 2050 (Chart 1).
You can thank Australia’s immigration policy for that benefit.
China on the other hand has peaked and is predicted to see a declined in the number of working age people between 15 and 64 because the one child policy was not relaxed/abolished earlier (Chart 2).
The insight in the research is how old global population is becoming and the proportion of people over 65 to the working population.
For example by the year 2050 Italy and most probably Japan are forecast to have as many people over the age of 65 as there are working age people between 15 and 64 (Chart 3).
This has enormous implications for collecting tax revenue, paying government pensions and funding medical expenses. Bottom line is that it will become more and more difficult for individuals to qualify for welfare benefits.
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