An aging population is set to create economic imbalances as the working-age population decreases, affecting output and growth. The share of retirees is projected to rise significantly by 2060, with some countries seeing over 75% of their population being retirees. This demographic shift will influence housing demand towards smaller and more accessible options. If labor force participation does not increase through the inclusion of women, older individuals, and immigrants, per capita income growth will decline to 0.6% annually. Incentives to boost fertility won't alleviate workforce shortages in the short term.
The imbalance is likely to strain economies because fewer workers will be supporting more retirees, dragging down economic output and income growth.
An aging population bleeds into changes in housing needs, as demand may shift from large family homes to smaller, more accessible housing.
As people live longer, the share of retirees compared to working-age adults is projected to rise from 31% in 2023 to 52% by 2060.
Unless more women, older people and immigrants are brought into the workforce, income per person will grow at just 0.6% annually through 2060.
Collection
[
|
...
]