Economics of ageing

Economics of ageing

Population ageing is often perceived negatively from an economic standpoint. But does the evidence support this perspective? And what can countries do to support ageing populations without breaking the bank? 

Population ageing is often perceived negatively from an economic standpoint. Yet, taking a more balanced view, it becomes evident that a growing older population is not necessarily very costly to care for, and that older people provide significant economic and societal benefits – particularly if they are healthy and active. 

This is the broad perspective of the Economics of Healthy and Active Ageing series: to inspire a ‘re-think’ of the economic consequences of population ageing.  

In this series, we investigate key policy questions associated with population ageing, bringing together findings from research and country experiences. We review what is known about the health and long-term care costs of older people, and consider many of the economic and societal benefits of healthy ageing.  

We also explore policy options within the health and long-term care sectors, as well as other areas, which: 

  • minimize avoidable health and long-term care costs
  • support older people so that they can continue to contribute meaningfully to society, or  
  • contribute to the sustainability of care systems in the context of changing demographics.  

The outputs of this series by the European Observatory take a variety of brief formats that are: accessible, policy-relevant and can be rapidly disseminated.  

Related publications

The politics of healthy ageing: myths and realities

Research from the European Observatory’s Economics of Health and Active Ageing series finds overwhelmingly that population ageing is not a major...

Health and social care near the end of life: can policies reduce costs and improve outcomes?

This brief reviews the evidence on health and social care needs and expenditures at the end of life. End of life costs are the main reason for high per...

Living longer, but in better or worse health?

This policy brief in the Observatory’s Economics of Healthy and Active Ageing series explores available information on the health and disability...

Working at older ages: why it's important, how it affects health, and the policy options to support health capacity for work

This policy brief critically examines the economic arguments for later retirement and longer working careers in response to population ageing. It supports...

Sustainable health financing with an ageing population: will population ageing lead to uncontrolled health expenditure growth?

The third policy brief in the Economics of Healthy and Active Ageing series looks at the long-term implications of population ageing for health spending...

Will population ageing spell the end of the welfare state?: a review of evidence and policy options

This brief serves as an overview and introduction to the Economics of Healthy and Active Ageing series. It reviews the main evidence on the health and...

Sustainable health financing with an ageing population: implications of different revenue raising mechanisms and policy options

This is the second brief in the Economics of Healthy and Active Ageing series. While there have been many prior analyses of how population ageing affects...

 Must ageing populations create conflict between generations and crisis for health systems? Our answer is no. The problem is not so much demographic...

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