Understanding the reasons for population aging is important for identifying solutions. For example, a solution frequently offered for a shrinking working- age population is to extend the retirement age. The logic behind this idea is powerful: if people are living longer they should work longer. This solution is a potentially important response to population aging, but it does not address the low fertility problem. In many countries the elderly
are heavily dependent on workers (taxpayers) who fund public pension and healthcare programs. Low fertility will lead to fewer children and then to fewer taxpayers on whom the elderly can rely.