ECONOMIC IMPLICATIONS OF GLOBAL AGEING

Abstract. The effect of global ageing on old age income and security has been a topic of interest across the globe. Global ageing is the result of a two pronged trend – rising life expectancy and declining fertility. The historically known steep pyramid shaped population structure that was characterized by more young people than old is slowly being replaced by an inverted pyramid, with more old than young. Population ageing is presenting a new challenge for the state for providing pensions and other long-term care benefits for a longer period than expected. The public system and the economy at large have to provide both for pension/retirement and health. There is no choice that exists between the two. Perhaps one can look at ways of exploiting the synergies between pension funds and long-term care. Key-words: pay-as-you-go, long-term care (LTC), defined benefits, defined contribution, phased retirement, annuities, pay-ou