Demographic Ageing

While this research paper is written with an intent to highlight the factor of demographic age bomb in UK, it is now necessary to analyze the situation of demographic ageing and its impact from the socioeconomic level.

One major factor that rose out from the issue of demographic age-bomb is the imbalance between the young and the elder generation. With the decrease in the rate of fertility and increase of elderly in the society [the ratio which is expected to surge], many of the elderly generation has to get dependent on the youth generation. Here, the dependent elderly is referred to those who are unable to work for health crisis, psychological issues in the old age. These elderly usually leads their post-retirement age in home by depending

Records indicate that the rate of unemployment among the youth stands at an alarming level as the rate of employment among the younger generation [16 – 24 years age] has turned out three times slower than the other age group when it comes to employment, since 1992. A research from the House of Commons library indicates that there 498,000 youth jobless in the said age group of which around 8,000 unemployed added over the last quarter. According to a study by Office of National Statistics, the current rate of unemployment is 14.4% and the overall unemployment rate is counted to 5.7% calculated based upon the total working population.

Furthermore, even for those younger generation who have managed to get a job, the rate of average wage received is around £1,800 per annum, the worst rate received by the youth than last five years. This gives one clear indication the change in the retirement age has proved a major obstacle to the younger generation to secure a job. The elderly generation working past state pension age comprises around 12.3% of the people in the country and is inevitable the rate is going to increase in the

While there is an increased participation of the elderly generation in the labor workforce, there are also a significant number of elderly who were deprived of a job in old age or retired from the service due to physical inability. This group of people who have economic insecurity due to inactiveness comprises 29% of the population [50 – 64 years]. It is also estimated that 12% [approx.] of the population that falls in the said age either have taken retirement from the service. Some of these retired elderly are self-employed and some are working to maintain their family. As per the overall labor market in 2013, the number of employed elderly that are aged 65+ counted to 9.5% and the number of inactive elderly constitutes an average of 90%(UKGOVT, 2013). This staggering rise of elderly as inactive generation gave rise to the elderly-dependent generation. The economically insecure elderly have no other option but to remain dependent on the younger generation in the family for their sustenance. These groups are mostly involved to do household and childcare activity in a family. Furthermore, the increase of spending behind healthcare also adds a major factor for the elderly and the youth who has to support the elderly. Looking at the cost to maintain housing and family, a survey made by ONS (2013) revealed that people spends at an average of £147.90 per week on housing, £145.40 is spent