When talking with clients about how their situation relates to larger issue of an aging population, I sometimes wish I had an easy way to illustrate the phenomenon.
Thanks to an article in the Los Angeles Times, I may have found one.
The Times story features an animated chart that shows the movement of baby-boomers through the population, emerging in the mid-1940s and moving up in age through about 2040, at which point it recedes.
Unsurprisingly, the takeaway from the article is that the population as a whole is aging.
The World Economic Forum is quoted as saying that “The potential consequences of an aging population, include economic pressure on healthcare and other welfare systems and a much smaller working-age population relative to the elderly.
That much smaller working population is key to the pressures faced by Washington as they look to provide support to our aging population.
In the article population economists Warren Sanderson and Sergei Scherbov note that “The old-age dependency ratio in the U.S. is forecast to increase by 61% from 2013 to 2030.” They observe however that the ratio of adults in the labor force to those not in it increases by only 3% in that period which indicates that forecasts of a small workforce having to support the retired may have to be revisited.
There is more of course but I’ll leave it to you to dive further into the L.A.Times story if only to see the animation I referred to above. Both are worth the click.
To read the L.A. Times story, click here.