Many countries in the developed world are now facing a positive situation in which many of their citizens will live longer than ever before. However, in societies that aim to sustain a basic level of welfare for their entire populations, the economic implications of these demographic changes are considerable. In Great Britain, for example, whilst there were 4.4 workers for every retired person in 1990, current projections suggest that by 2030 this ratio will drop to 3.2 workers per retired person. With these changing dependency ratios, the burden on the pensions,
welfare and health care systems will become substantial.
This is the so-called 'demographic time-bomb'. Various
solutions for reducing the possible fiscal deficits are
technically possible but it has been suggested that one of
the least unpopular options will be to keep workers at
work for longer.There are two other arguments for
people working longer. First, without a rise in the usua