As is the case with many other developed countries, the American population is an aging one. The section of the U.S. population aged 65 and above has experienced unprecedented growth over the last few years. And this trend is set to continue. Many questions come to mind regarding this demographic change. What are the reasons for an aging population? Also, what impact does an aging population have on the lives of U.S. citizens?
Why Is the Population Aging?
The aging population of the U.S. is by no means a unique occurrence. First a trend that emerged in developed countries, aging populations are now also a reality in most developing nations. In fact, in the entire history of humans, the world population has never included so many old people. The reasons for this demographic shift are numerous.
The Baby Boomers
The name “Baby Boomers” refers to the boom in births that took place after WWII to about the mid-1960s. During the boom in the U.S., roughly 76 million babies were born. The drastic increase in births during this period was partly due to the fact that people wanted to start families after the war.
Holding over 53% of the country’s wealth, the Baby Boomers is by far the richest generation in the U.S. today. They are also the longest-living generation in history, which explains why they are a major contributing factor to the aging population crisis.
Contraception
Another important reason for the aging population is the invention of the pill during the 1950s. With the advent of the pill, women gained a lot. They had far more control over their lives, which included the freedom to delay or eschew marriage and pursue careers. Unsurprisingly, women with access to contraception have been having fewer and fewer children, resulting in unparalleled demographic change. Today, most countries in the world have an aging population.
Rising Life Expectancy
Apart from the fact that fewer babies are born every year, people are also living longer. In the 1950s, the average American had a life expectancy of about 68 years. Today, the average life expectancy is around 79 years. People are living longer because they generally eat better than their parents and grandparents did. Also, medical knowledge and services have improved dramatically over the past few decades. In addition, people have increased access to healthcare services.
What Are the Effects of an Aging Population?
So how does an aging population affect the day-to-day lives of Americans? In short, an aging population has a dramatic effect on many facets of life, such as economic growth and the ability of governments to provide adequate care for the elderly.
Social Security
Many countries, including the U.S., are experiencing sustainability problems when it comes to social security. The reason for this is simple. While an increasingly larger section of the population is reaching retirement age, the number of tax-contributing citizens is decreasing. The main contributors to the social security program in the past, namely the Baby Boomers, have reached retirement age and are now withdrawing funds.
According to statistics, there will be more older adults in the U.S. by the mid-2030s than children. It is also projected that by the mid-to-late 2030s, the social security program will have insufficient funds to pay out promised benefits.
Health Care
With an aging population comes an increasing need for healthcare services. While healthcare expenditure in the U.S. amounted to $4.1 trillion in 2020, this figure is set to increase to roughly $6.2 trillion by 2028. Although this unprecedented increase in the need for healthcare services is due to multiple causes, the aging population is a major contributing factor.
The increasing proportion of the population that will require medical services in the future, will present a major challenge for the healthcare system in the U.S. On the plus side, however, the increasing need for healthcare services presents an abundance of career opportunities for workers of all ages. Apart from becoming a doctor or nurse, job seekers can also consider alternative jobs such as musical or occupational therapy. Working as a pharmacist or a pharmacy tech is also a good option for those looking for stable and in-demand careers in the healthcare industry.
The Economy
An aging population impacts an economy in multiple ways. First, those who work have to pay higher taxes due to a shrinking workforce. Second, higher investment in pension funds by a society reduces the opportunity for more productive investments, which can lead to lower rates of economic growth. Another effect of an aging population on the economy is a shortage of workers. This can cause an increase in wages, which can result in wage inflation.
In general, studies have found that a decline in the labor force and population growth is not good for the economy since it slows down GDP growth.
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